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Your firm needs a computerized machine tool lathe which costs $41,000 and requires $11,100 in maintenance for each year of its 3-year life. After three years, this machine will be replaced. The machine falls into the MACRS 3-year class life category. Assume a tax rate of 39 percent and a discount rate of 11 percent. If the lathe can be sold for $4,100.

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Financial Management, Finance

Category:- Financial Management
Reference No.:- M92355824

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