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  3. a. a new operating system for an existing machine

a. A new operating system for an existing machine is expected to cost $630,000...

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Accounting

a.

A new operating system for an existing machine is expected to cost $630,000 and have a useful life of six years. The system yields an incremental after-tax income of $245,000 each year after deducting its straight-line depreciation. The predicted salvage value of the system is $14,400.

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