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The Everly Equipment Company's flange-lipping mochine was purchased 5 years ago for $55,000. It had an expected lie of 10 years when it was boight
The Everly Equipment Company's flange-lipping mochine was purchased 5 years ago for $55,000. It had an expected lie of 10 years when it was boight and its rema ining depreciation is 55,500 per year for each year of its remaining life. As older finge-fippers are robust and useful machines, this one can be sold for $20,000 at the end of its useful life: 540,000 per year, although is will not affect ssles. At the end of its useful life, the high-etficiency machine is estimated to be woethless, MACRS deprecistion witi be used, and the The oid machine can be toid today for $45,000. The firm's tax rate is 35%, and the apprepriate cost of capital is 15%4. indicated by a minus aign- 3 Cash oveffows, if any, theuld be indicated by a minus tign. mintis si 1 Should evety replace the fiange-tipper
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