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What is the annual net income from purchase

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Outdoor Gear is purchasing equipment costing $485,900 that will lower manufacturing costs by $132,000 a year. The equipment will be depreciated over 8 years using straight-line depreciation to a zero book value. After 8 years, the equipment will be worthless. The discount rate is 16 percent and the tax rate is 34 percent. What is the annual net income from this purchase?

Reference no: EM132780553

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