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Equity Corp. paid a consultant to study the desirability of installing some new equipment. The consultant recently submitted the following analysis: Cost of new machine:
Equity Corp. paid a consultant to study the desirability of installing some new equipment. The consultant recently submitted the following analysis: Cost of new machine: $100,000 PV of after tax revenues from operations: $90,000 PV of after-tax operating expenses: $20,000 PV of depreciation expenses: $87,500 Consulting fees and expenses: $750 The corporate tax rate is 40%. Should Equity Corp. accept the project
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