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Consider a machine purchased one year ago for $ 1 5 , 0 0 0 . The machine is being depreciated $ 3 , 0
Consider a machine purchased one year ago for $ The machine is being depreciated $ per year throughout a fiveyear period. Its current market value is $ and the expected market value of the machine one year from now is $
If the interest rate is the expected cost of holding the machine during the next year is
$
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