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You work in a manufacturing company. You have the possibility to change your production unit. This production unit was bought 2 years ago for 1000000$,

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You work in a manufacturing company. You have the possibility to change your production unit. This production unit was bought 2 years ago for 1000000$, useful life 10 years, depreciated following the straight line method with a salvage value of 0 . Today this machine can be sold for 420000$. The new production unit cost 1500000$, with a useful life of 5 years, depreciated following the straight line method with a salvage value of 300000$ at the end of its useful life. This machine will increase your working capital by 10000$. This machine is more efficient and will allow you to reduce your fixed cost by : - Labour cost : 8000$/ month - Energy cost : 75000$ /quarter Tax rate is 30% and will be 15% at the beginning of year 3 . You want a rate of return of 16%. Do you invest and why ? give several KPI to analyse the situation

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