Macrs depreciation is used for all capital purchases

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Reference no: EM131810101

The An Houser-Shrub Brewing Company (AB), makers of Bud smarter Beer, must purchase a new bottle-labeling machine. The machine is expected to save production costs and to increase efficiency. Which of the three best alternatives presented below should be chosen? AB pays taxes at the 34% marginal rate and has an interest rate of 12%. MACRS depreciation is used for all capital purchases.

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Reference no: EM131810101

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