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Unformatted text preview: your work and the answer summary sheet. 1. Problem 7.8 (10 points) 2. Problem 7.15 (10 points) 3. Problem 7.32 (12 points) 4. Problem 7.38 (10 points) 5. Problem 7.44 (8 points) 6. (10 points) Your company is considering investing in a new machine for quality control. The machine will require a capital investment of $345,000, will yield annual savings of $112,000, and will be sold at the end of year 6 for $80,000. The machine will be depreciated with GDS using a 7-year recovery period. The effective income tax rate is 40% and your company’s after tax MARR is 10%. Calculate the PW of the ATCFs that this machine would generate....
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This note was uploaded on 02/07/2012 for the course IE 343 taught by Professor Vincent,g during the Spring '08 term at Purdue.
- Spring '08