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Degnan Dance Company, Inc., a manufacturer of dance and exercise apparel, is considering replacing an existing piece of equipment with a more sophisticated machine. The

Degnan Dance Company, Inc., a manufacturer of dance and exercise apparel, is considering replacing an existing piece of equipment with a more sophisticated machine. The firm pays 40% taxes on ordinary income and capital gains. The following information is given.
\table[[,Acts],[Fxinting Machine,Froposed Machine],[Cost-$10000,Cost =5150.000
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