The initial cost of an injection machine is $50000. The operating and maintenance costs per...
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The initial cost of an injection machine is $50000. The operating and maintenance costs per unit produced is $0.25. The salvage value of the machine after five years is expected to be $4500. The machine is expected to be operated for 250 days per year. The production of the machine is 750 per day. Determine the total after-tax annual cost of a machine if the CCA rate is 30%, the after-tax MARR is 20%, and the corporate income tax rate is 40%.
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