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One year ago, your company purchased a machine used in manufacturing for $120,000 . You have learned that a new machine is available that offers

One year ago, your company purchased a machine used in manufacturing for $120,000 . You have learned that a new machine is available that offers many advantages; you can purchase it for $170,000 today. It will be depreciated on a straight-line basis over 10 years, after which it has no salvage value. You expect that the new machine will contribute EBITDA (earnings before interest, taxes, depreciation, and amortization) of $55,000 per year for the next 10 years. The current machine is expected to produce EBITDA of $23,000 per year. The current machine is being depreciated on a straight-line basis over a useful life of 11 years, after which it will have no salvage value, so depreciation expense for the

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