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Stark Ltd is considering the replacement of its existing plant with a new model. While the existing plant can be sold now for $ 8
Stark Ltd is considering the replacement of its existing plant with a new model. While the existing plant can be sold now for $ The required rate of return on the plant is per annum and the corporate tax rate is The new machine is depreciable for tax purposes at the prime cost rate over the duration of its life. Relevant data is listed in the following table. Should Stark Ltd replace the old machine?
Stark Ltd is considering the replacement of its existing plant with a new model. While the existing plant can be sold now for $ The required rate of return on the plant is per annum and the corporate tax rate is The new machine is depreciable for tax purposes at the prime cost rate over the duration of its life. Relevant data is listed in the following table. Should Stark Ltd replace the old machine?
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