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Right Price Investors, Inc. is considering the purchase of a $415,000 computer with an economic life of five years. The computer will be fully depreciated over five-year MACRS property for tax purposes. The market value of the computer will be $55,000 in five years. The computer will replace four employees whose combined annual salaries are $120,000. The corporate tax rate is 40%. Is it worth wile to buy the computer if the appropriate discount rate is 9%?

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Business Economics, Economics

Category:- Business Economics
Reference No.:- M91795961

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