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You are considering the purchase of a new industrial pump that you will use for three...

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Finance

You are considering the purchase of a new industrial pump thatyou will use for three years, and it will cost you $40,000 to buy.It will be depreciated using the 3-year MACRS schedule (.33, .45,.15, .07 are the factors) and will be sold at the end of the thirdyear for $8,000. It will also require 3,000 each year inmaintenance. If your tax rate is 25% and your cost of capital is10%, what is the equivalent annual payment for this machine?

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wherei interest raten lifePlease refer to below    See Answer
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