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Eastern Townships Inc. is planning to buy new equipment to produce a new product. The company estimates the following (dollar amounts in thousands): Assume a

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Eastern Townships Inc. is planning to buy new equipment to produce a new product. The company estimates the following (dollar amounts in thousands): Assume a 30\% flat rate for income taxes purposes, a 14% discount rate, and a 10-year straight-line amortization for tax purposes. Also assume that the terminal salvage value will affect the amortization per year. All revenues and expenses will be received or paid in cash. Instructions 1. Compute the following: a. Amortization expenses per year. b. Anticipated net income per year. c. Annual net cash flow. d. Payback period. e. Accounting rate of return on initial investment. f. Net present value

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