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SILA Company is planning to buy a new machine that can produce additional 20,000 units of product per year. The product sells for $50 each.
SILA Company is planning to buy a new machine that can produce additional 20,000 units of product per year. The product sells for $50 each. The cost associated with the product per year is $30 per unit, exclusive of depreciation on the new machine. The new machine which is expected to last for 10 years will cost $500,000. No salvage value is expected to be recovered at the end of its life. Tax rate is 30%.
The accounting net income is
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