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Trade Company is expected to have sales of 3 , 0 0 0 units per year of a product. Trade expects the product to have

Trade Company is expected to have sales of 3,000 units per year of a product. Trade expects the product to have a lifetime of 5 years and an expected price of 20. The product is expected to cost 12 per unit. Trade will purchase a new machine for 10,000 and rent a space to sell its product. The machine will be depreciated using the straight-line (or straight-line) method over a five-year life cycle with no residual value. Trade expects to spend 3,000 per year in rental costs. The marginal tax rate is 20%. Predict the incremental profits of Trade.

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