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For your business, you are planning to purchase a new machine that requires an initial outlay of $80,000. The new machine promises net cash flows
For your business, you are planning to purchase a new machine that requires an initial outlay of $80,000. The new machine promises net cash flows before depreciation and tax of $26,000 each year for the next five years. Assume straight line depreciation method. If your business is under the tax bracket of 30%, what is the ARR of the new machine?
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