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Purple Haze Machine Shop is considering a four-year project to improve its production efficiency. Buying a new machine press for $511666 is estimated to result

Purple Haze Machine Shop is considering a four-year project to improve its production efficiency. Buying a new machine press for $511666 is estimated to result in $198606 in annual pretax cost savings. The press falls in the MACRS five-year class, and it will have a salvage value at the end of the project of $108775. The shop's tax rate is 28 percent. What is the OCF for year 4?

image text in transcribed Round final answer to the nearest dollar amount

Modified ACRS Depreciation Allowances (Table 10.7) Year Three-Year Five-Year Seven-Year 33.33% 44.45 14.81 7.41 20.00% 32.00 19.20 11.52 11.52 5.76 14.29% 24.49 17.49 12.49 8.93 8.92 8.93 4.46 4 6 7 8

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