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Your company is considering a new project that will require $985,000 of new equipment at the start of the project. The equipment will have a depreciable life of 9 years and will be depreciated to a book value of $157,000 using straight-line depreciation. The cost of capital is 12 percent, and the firm’s tax rate is 35 percent.

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Financial Management, Finance

Category:- Financial Management
Reference No.:- M91261607

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