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Valuation fundamental sImaginethatyouaretryingtoevaluatetheeconomicsofpur- chasinganautomobile.Youexpectthecartoprovideannualafter-taxcashbenefitsof 1,200 at the end of each year and assume that you can sell the car for after-tax pro- ceeds of 5,000attheendoftheplanned5-year

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Valuation fundamental sImaginethatyouaretryingtoevaluatetheeconomicsofpur- chasinganautomobile.Youexpectthecartoprovideannualafter-taxcashbenefitsof 1,200 at the end of each year and assume that you can sell the car for after-tax pro- ceeds of 5,000attheendoftheplanned5-year ownershipperiod. All fundsforpurchasingthecar willbedrawn fromyoursavings, whicharecurrentlyearning6

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