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Leumax Inc. is contemplating the purchase of a new caterpillar machine. The machine will cost $180,000 Its market value at the end of five years

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Leumax Inc. is contemplating the purchase of a new caterpillar machine. The machine will cost $180,000 Its market value at the end of five years is estimated as $40,000. The accounting department uses the straight line method to depreciate the equipment. The justification for this machine include $40,000 savings per year in labor and $30,000 savings per year in reduced material. The before-tax MARR is 10% Use this information to solve questions a and b The taxable income for year three is most nearly The total before-tax cash flow in year five is most nearly PW of ATCF A$

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