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New equipment costs $675,000 and is expected to last for five years with no salvage value. During this time the company will use a 30%
New equipment costs $675,000 and is expected to last for five years with no salvage value. During this time the company will use a 30% CCA rate. The new equipment will save $120,000 annually before taxes. If the company's required rate of return is 12%, determine the PVCCATS of the purchase. Assume a tax rate of 35%
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