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Question 7 0 out of 5 points Onward Inc is considering the purchase of a new machine for the production of computers. Machine A costs
Question 7 0 out of 5 points Onward Inc is considering the purchase of a new machine for the production of computers. Machine A costs $4,500,000 and will last for 5 years. Variable costs are 15% of sales and fixed costs are $750,000 per year. Machine B costs $6,000,000 and will last for 7 years. Variable costs for the machine are 20% of sales and fixed costs are $1,000,000 per year. The sales for each machine will be $3,000,000 per year. The required rate of return is 7%, the tax rate is 21%, and both machines will be depreciated using straight-line with a no salvage value. Based on the information provided, the firm should
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