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please write out processes! Show work for number 8! 8. UTSA Printing Services is considering the purchase of new type-setting equipment for $6,000 and selling
please write out processes! Show work for number 8!
8. UTSA Printing Services is considering the purchase of new type-setting equipment for $6,000 and selling their old one for $2,000. The new equipment wi years and save $1500 a year in expenses. The opportunity cost ofcapital is 16% and the company's tax rate is 40%. ipment will last for 6 oa. Using a straight-line depreciation schedule with zero salvage value at the end of a 6 year life, what are the cash flows of the project each year? (The old equipment is fully depreciated). What is the project's NPV? what would it be if using the 5-Year MACRS schedule? (P#286 in your text). b. cStep by Step Solution
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