Actual savings due to the purchase

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Reference no: EM131810070

Five years ago, the XYZ Company purchased a $30,000 automated production line. The line has just been sold for $5000. The machinery was depreciated using the straight-line method to a salvage value of $0. The actual savings due to the purchase of this line are presented below. Was the purchase justified if XYZ's MARR is 8%? Taxes are paid at the 34% marginal rate.

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Reference no: EM131810070

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