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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 $1,200,000 with shipping and installation costs of $300,000. The
equipment will be depreciated to a zero-salvage value over 10 years on a straight-
line basis. Purchase of the equipment would require an increase in net operating
working capital of $75,000. The equipment would increase the firm's before-tax
revenues by $500,000 per year but would also increase operating costs by
$200,000 per year. The machine is expected to be used for 15 years and then sold
for $100,000. The firm's marginal tax rate is 20%, and the project's cost of capital
is 18%. Should the new machine be purchased? Show computations|
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