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Question 2) (20 points) A start-up biotech company is considering making an investment of $300,000 in a new filtration system. The associated estimates are summarized
Question 2) (20 points) A start-up biotech company is considering making an investment of $300,000 in a new filtration system. The associated estimates are summarized below. Straight-line depreciation will be used, and the effective income tax rate is 20%. The after-tax MARR is 15% per year. Determine whether this investment is an attractive option for the company. Annual Receipt : $90,000 Annual Expenses $55,000 Useful life $30years Terminal book value (EOY 30) $75,000 Terminal market value $75,000
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