Only solve 11.31 11.31 Rework Problem 11.11, assuming...
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Accounting
Only solve 11.31
11.31 Rework Problem 11.11, assuming the following additional information: For tax purposes, the entire cost of $30,000 can be depreciated according toa five-year MACRS property class. The firm's marginal tax rate is 40%. 11.11 A special-purpose machine is to be purchased at a cost of $30,000. The following table shows the expected annual operating and maintenance cost and the salvage value for each year of service: Year of Service O&M Cost Market Value $25,800 $6,500 $16,000 $10,000$10,000 $5,000 $0 $5,000 4 $12,500 $14,800 If the interest rate is 12%, what is the economic service life for this machine
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