What is the annual net income from this purchase

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Question: Excellent Adventures is purchasing equipment costing $485,900 that will lower manufacturing costs by $132,000 a year. The equipment will be depreciated over eight years using straight-line depreciation to a zero book value. After eight years, the equipment will be worthless. The discount rate is 16 percent and the tax rate is 21 percent. What is the annual net income from this purchase?

Reference no: EM133430559

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