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The Summit Pation Corporation will purchase an asset that qualified for three year MACRS depreciation. The cont in 5140,000 and the asset will provide the
The Summit Pation Corporation will purchase an asset that qualified for three year MACRS depreciation. The cont in 5140,000 and the asset will provide the following stream of earnings before depreciation and te for the next four years: Use The 12-12 Year 2 Year Your $80.000 44.000 The fem sa 35 percent tax bracket and has a cost of capital of 7 percent. Use Appendix for an approximate answer but calculate your fra answer using the formula and financial calculator methods. 2. Calculate the representatie. Negative amount should be indicated by a minus sign. Do not round Intermediate calculations and round your answer to 2 decimal places.) b. Under the present method, should suit Petroleum Corporation purchase these? OY
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