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Five years ago, the XYZ Company purchased a $30,000 automated production line. The line has just been sold for $5000. The machinery was depreciated using the straight-line method to a salvage value of $0. The actual savings due to the purchase of this line are presented below. Was the purchase justified if XYZ's MARR is 8%? Taxes are paid at the 34% marginal rate.

423_depreciated using the straight-line method.png

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Business Economics, Economics

Category:- Business Economics
Reference No.:- M92638436

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