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please help asap! it is due tonight and I am extremely confused.The president of Orlando Corporation has asked you to evaluate the proposed acquisition of
please help asap! it is due tonight and I am extremely confused.The president of Orlando Corporation has asked you to evaluate the proposed
acquisition of new kitchen equipment for its five restaurants. The equipment's
price is $ with shipping and installation costs of $ The
equipment will be depreciated to a zerosalvage value over years on a straight
line basis. Purchase of the equipment would require an increase in net operating
working capital of $ The equipment would increase the firm's beforetax
revenues by $ per year but would also increase operating costs by
$ per year. The machine is expected to be used for years and then sold
for $ The firm's marginal tax rate is and the project's cost of capital
is Should the new machine be purchased? Show computations
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