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PLEASE SHOW DETAILED WORK. A company is considering the purchase of a machine costing $84,000. The machine will be depreciated using straight line depreciation to
PLEASE SHOW DETAILED WORK.
A company is considering the purchase of a machine costing $84,000. The machine will be depreciated using straight line depreciation to a zero book value over the three-year life of the machine and will be replaced. The estimated annual cost to operate the machine is $8,000. The tax rate is 34% and required rate of return is 12%. What is the EAC of this machine? Determine project cash flows and NPV of project cash flows NPV = PV; project life N; required return I/Y; CPT PMT O O - 1 (1+r)' PV ordinary = C rStep by Step Solution
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