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Dana Inc. is considering some new equipment whose data are shown below. Under the new tax law, the equipment used in the project is eligible
Dana Inc. is considering some new equipment whose data are shown below. Under the new tax law, the equipment used in the project is eligible for 100% bonus depreciation, so it will be fully depreciated at t=0, but it would have a positive pre-tax salvage value at the end of Year 3. Also, some new working capital would be required, but it would be recovered at the end of the project's life. Revenues and other operating costs are expected to be constant over the project's 3-year life
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