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_______. is evaluating different equipment. Machine A has an initial cost of $125,000 and has a four-year life, and costs $55,000 per year to operate.
_______. is evaluating different equipment. Machine A has an initial cost of $125,000 and has a four-year life, and costs $55,000 per year to operate. The machine will be depreciated using straight-line and the relevant discount rate is 8%. The machine will have a salvage value of $0 and was sold for $20,000 at the end of the project's life. The firm has a tax rate of 21%. Calculate the NPV of the project. (Enter a negative value and round to 2 decimals) Calculate the EAC for the project. (Enter a positive value and round to 2 decimals) |
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