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Overarmour Corp. is in the evaluation process for the acquisition of a new machine with 6 years productive life (5 years MACRS). The new machine
Overarmour Corp. is in the evaluation process for the acquisition of a new machine with 6 years productive life (5 years MACRS). The new machine with a total cost of $90,000 will produce earnings before depreciation and taxes of $25,000 during years 1 - 3 and $20 during years 4 - 6. Overarmour cost of capital is 12.5% and the corporate tax rate is 35%. How much will be the depreciation expense for year 1
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