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Vermont Corporation is considering the purchase of a machine that costs $575,000. The machine is expected to last for six years with a salvage value

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Vermont Corporation is considering the purchase of a machine that costs $575,000. The machine is expected to last for six years with a salvage value of $11,0000 and will be depreciated using the straight-line depreciation method. It is expected that the machine will generate the following cash revenues and expenses during its useful life. Vermont's management desires a 20% rate of return before taxes and 13% after taxes. Management also desires investments to pay back in 4.5 years or less on an after tax basis. The company's average tax rate is 35%. REQUIRED: (1) Compute the following for this investment. Round all dollar amounts to the nearest whole dollar and all percentages and periods to two decimal places. (a) After tax accounting rate of return. (b) After tax payback period. (c) After tax net present value. Should the company invest in this machine? Explain

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