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One year ago, your company purchased a machine used in manufacturing for $115.000. You have learned that a new machine is available that offers many

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One year ago, your company purchased a machine used in manufacturing for $115.000. You have learned that a new machine is available that offers many advantages and that you can purchase it for $160,000 today. The CCA rate applicable to both machines is 30%, neither machine will have any long-term salvage value. You expect that the schine will produce amings before interest, taxes, depreciation, and amortization (TDA) of $35.000 per year for the next ten years. The e ciment machine is $50.000 Your company's tax n 35% the opportunity cost of machine? current machine is expected to produce EBITDA of $22,000 pers capital for this type of equipment in 12%. Should your company m One year ago, your company purchased a machine used in manufacturing for $115.000. You have learned that a new machine is available that offers many advantages and that you can purchase it for $160,000 today. The CCA rate applicable to both machines is 30%, neither machine will have any long-term salvage value. You expect that the schine will produce amings before interest, taxes, depreciation, and amortization (TDA) of $35.000 per year for the next ten years. The e ciment machine is $50.000 Your company's tax n 35% the opportunity cost of machine? current machine is expected to produce EBITDA of $22,000 pers capital for this type of equipment in 12%. Should your company m

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