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Question: A new machine is estimated to cost $200,000 and reduce net annual operating expenses by $36,000 for 10 years and have a market value of $30,000 at the end of the 10^th year. Assume the firm is in the $335k-$10M taxable income bracket and the state tax rate is 6%. The machine is MACRS 7-year property class. The after-tax MARR is 10%/year. Prepare excel file to perform the following.

- Calculate the before-tax and after-tax IRR.

- Calculate the after-tax PW.

- Perform parts a and b using straight line depreciation.

- Perform parts a and b using DDB depreciation.

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Category:- Basic Finance
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