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The purchase cost of a machine is $125,000. This machine is useful for 5 years with a salvage value of $50,000. Operation of this machine
The purchase cost of a machine is $125,000. This machine is useful for 5 years with a salvage value of $50,000. Operation of this machine results in an annual revenue of $100,000 at an annual cost of $40,000. The machine has a CCA rate of 30%. The tax rate is 40% and MARR= 15% What is the net income in year 2?
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