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please help Your firm produces light bulbs. Your old machine is costing a lot of money lately in repairs and your are considering replacing it.
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Your firm produces light bulbs. Your old machine is costing a lot of money lately in repairs and your are considering replacing it. You have two offers as shown in the left. Assuming straight line depreciation with 0 salvage value over the life of the project. You sell each light bulb for $0.40, the discount rate is 12% and the corporate tax rate is 40%. a. Which machine would you prefer to buy if your annual production is 1,000,000 light bulbs? b. At what level of production will you change your Step by Step Solution
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