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Specialty Machining, Inc. bought a new multi turret turning center for $250,000. The machine generated new revenue of $80,000 per year. Operating costs for the machine averaged $10,000 per year. Following IRS regulations, the machine was depreciated using the MACRS method, with a recovery period of 7 years. The center was sold for $75,000 after 5 years of service. The company uses an after-tax MARR rate of 12% and is in the 35% tax bracket. Determine the after-tax net present worth of this asset over the 5-year service period.

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Business Economics, Economics

Category:- Business Economics
Reference No.:- M92638770

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