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Xavier Corporation plans to purchase a new machine to replace an older machine on its assembly line. the new machine's purchase price is $500,000, and

Xavier Corporation plans to purchase a new machine to replace an older machine on its assembly line. the new machine's purchase price is $500,000, and it will cost $75,000 to have the new machine shipped and installed. The old m aching which is fully depreciated, can be sold to another company for $45,000. The new machine falls into the MACRS 5-years class. Computer the depreciation expense associated with the new machine for the next five years? What is the amount the firm will be able to depreciate for each of the next five years?

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