machines to produce the new vaccine cost $70 million and have a 5-year life, straight-line...
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machines to produce the new vaccine cost $70 million and have a 5-year life, straight-line depreciation, and a zero salvage value. Each machine is capable of producing 75,000 vaccines annually. Annual fixed costs for producing the vaccine are $120 million, and the variable cost per vaccine is $1,000. The companys discount rate for this type of vaccine is 15%, and its corporate tax rate is 30%. .
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