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You are evaluating two different machine. The JJ1 costs $290,000, has three year life and has pretax operating costs of $67,000 per year. The JJ2 costs $510,000, has five year life and has pretax operating costs of $35000 per year. For both Machine use straight line depreciation to zero over the projects life and assume a salvage value of $40,000. if your tax rate is 35 percent and your discount rate is 10 percent , compute the EAC of both machines

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Accounting Basics, Accounting

Category:- Accounting Basics
Reference No.:- M9435519

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