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Granny's Butter and Egg Business is such that she pays an effective tax rate of 40%. Granny is considering the purchase of a new Turbo

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Granny's Butter and Egg Business is such that she pays an effective tax rate of 40%. Granny is considering the purchase of a new Turbo Churn for $25, 000. This churn is a special handling device for food manufacture and has an estimated life of 4 years and a salvage value of $2, 000. The new churn is expected to increase net income by $11, 500 per year for each of the four years of use. If Granny works with an after-tax MARR of 18% and uses MACRS depreciation (with 3 year recovery period), should she buy the churn

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