You are evaluating a new machine that has a four-year life and costs $100,000. The...
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Accounting
You are evaluating a new machine that has a four-year life and costs $100,000. The pretax operating costs of operating the machine are $25163 per year. Use straight-line depreciation to zero over the project's life and assume a before-tax market salvage value of $20,000 at the end of four years. If your tax rate is 34 percent and your discount rate is 7 percent. What is the Equivalent Annual Cost (EAC)? Select one: a. $32108 b. $30148 c. $26605 d. $30201 e. $34657
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