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Ridgely Custom Metal Products (RCMP) must purchase a new tube bender. They consider three models with costs and benefits as per the following table: Model
Ridgely Custom Metal Products (RCMP) must purchase a new tube bender. They consider three models with costs and benefits as per the following table: Model Economic Life T A X First Cost $100 000 150 000 200 000 5 years 5 years 3 years Yearly Net Savings $50 000 60 000 75 000 Salvage Value $20 000 30 000 100 000 rate is 52 percent. A tube RCMP's after-tax MARR is 11 percent and the corporate bender is a CCA Class 8 asset with a depreciation rate of 20%. Using the present worth method and the least-cost multiple of the service lives, which tube bender should it buy
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