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The cost of the new machine is $ 1 2 7 , 0 0 0 . Installation will cost $ 2 0 , 0 0
The cost of the new machine is $
Installation will cost $
$ in net working capital will be needed at the time of installation.
The project will increase revenues by $ per year, but operating costs will increase by of the revenue increase.
Simplified straight line depreciation is used.
Class life is years, and the firm is planning to keep the project for years.
Salvage value at the end of year will be $
cost of capital; marginal tax rate. The depreciation is How do I get this result? Could you please show me how to get depreciation by NOT using excel but calculation?
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