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Problem 2 A firm has earnings of $12,000 before depreciation and taxes (EBTDA). A new piece of equipment is purchased and installed at a cost

Problem 2 A firm has earnings of $12,000 before depreciation and taxes (EBTDA). A new piece of equipment is purchased and installed at a cost of $10,000. The equipment has a five year life fortax purpose and the firm pays 25%in income taxes

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