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Unformatted text preview: 6 years. The company is in a 30% tax rate and is depreciating the equipment to a salvage value of 25,000 using straight line depreciation over its six year life. The company expects to recover the investment in inventory in year 6, and expects the equipment will be sold for 50,000. The cost of capital for Vitron is 12%....
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- Fall '11