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Business, 26.11.2019 05:31 bedsaul12345

Consider a $10,000 machine that will reduce pretax operating costs by $3,000 per year over a 5-year period. assume no changes in net working capital and a zero scrap value after five years. for simplicity, assume straight-line depreciation to zero, a marginal tax rate of 34 percent, and a required return of 10 percent. the net present value of acquiring this machine is: a) $83.b) $449.c) $689.d) $827.e) $1,235.

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