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Your company purchased a computerized measuring device two years ago for $80,000. It falls into the 5-year category for MACRS depreciation. The equipment can currently
Your company purchased a computerized measuring device two years ago for $80,000. It falls into the 5-year category for MACRS depreciation. The equipment can currently be sold for $28,400. A new piece of equipment will cost $210,000, and falls into the same 5-year MACRS category for depreciation. The new equipment is expected to provide the stream of added cost savings for the next 6 years as $76,000, $66,000, $62,000, $60,000, $56,000, $42,000. Tax rate is 34%, and the cost of capital is 12%
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