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Dickinson Brothers, Inc., is considering investing in a machine to produce computer keyboards. The price of the machine will be $ 1 , 5 5
Dickinson Brothers, Inc., is considering investing in a machine to produce computer keyboards. The price of the machine will be $ and its economic life is five years. The machine will be fully depreciated by the straightline method. The machine will produce keyboards each year. The price of each keyboard will be $ in the first year and will increase by percent per year. The production cost per keyboard will be $ in the first year and will increase by percent per year. The project will have an annual fixed cost of $ and require an immediate investment of $ in net working capital. The corporate tax rate for the company is percent. The appropriate discount rate is percent.
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