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Gabriel company currently makes 200,000 large strawberry jars per year at a variable cost of $9.75. Equipment is available for $500,000 that will reduce the

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Gabriel company currently makes 200,000 large strawberry jars per year at a variable cost of $9.75. Equipment is available for $500,000 that will reduce the variable cost to $7.50 while increase cash fixed costs by $200,000. The equipment will have not salvage value at the end of its four-year life and will be depreciated using the straight-line method. Gabriel has a 30% tax rate and a 12% hurdle rate. Do it

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