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find the PW 11.2 The Wellington Construction Company is considering acquiring a new earthmover. The mover's basic price is $90,000, and it will cost another
find the PW
11.2 The Wellington Construction Company is considering acquiring a new earthmover. The mover's basic price is $90,000, and it will cost another $18,000 to modify it for special use by the company. This earthmover falls into the MACRS five-year class. It will be sold after four years for $30,000. The purchase of the earthmover will have no effect on revenues, but it is expected to save the firm $35,000 per year in before-tax operating costs, mainly labor. The firm's marginal tax rate (federal plus state) is 25%, and its MARR is 10%Step by Step Solution
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