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Telstar Communications is going to purchase an asset for $420,000 that will produce $200,000 per year for the next four years in earnings before depreciation

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Telstar Communications is going to purchase an asset for $420,000 that will produce $200,000 per year for the next four years in earnings before depreciation and taxes. The asset will be depreciated using the three-year MACRS depreciation schedule in Table 12 12 (This represents four years of depreciation based on the haif-year convention.) The firm is in a 25 percent tax bracket Fill in the schedule below for the next four years

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