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Business, 06.10.2019 03:30 kward591

Your company is contemplating the purchase of a large stamping machine. the machine will cost $180,000. additional transportation and installation costs are $5,000 and $10,000 respectively. its mv at the end of five years is estimated as $40,000. the irs has assured you that this machine will fall under a 3-year macrs class life category. the justifications for this machine include $40,000 savings per year in labor and $30,000 savings per year in reduced materials. the before-tax marr is 20% per year, and the effective income tax rate is 40%. the total before-tax cash flow in year five is (assuming you sell the machine at the end of year five):

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Your company is contemplating the purchase of a large stamping machine. the machine will cost $180,0...
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