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Problem7 Precision Machining, a New Brunswick company, expects to have annual taxable income of $490,000...

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Problem7 Precision Machining, a New Brunswick company, expects to have annual taxable income of $490,000 from its regular business over the next six years. The company is considering the proposed acquisition of a new milling machine. The machine's installed price is $200,000. The machine falls into a 30% declining balance CCA class, and it will have an estimated salvage value of $30,000 at the end of six years. The machine is expected to generate an additional before-tax revenue of $80,000 per year. Assume that the company qualifies for the small business deduction (a) What is the total amount of economic depreciation for the milling machine, if the asset is sold at $30,000 at the end of six years? (b) Determine the company's marginal tax rates over the next six years without the machine ENG M 310A1 Engineering Economy (Fall 2017) (c) Determine the company's average tax rates over the next six years with the machine

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