Yearly for the next ten years

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Assume a project costs $1200, has a life time of 10 years, and SV=$200 at the end of 10 years. The company uses straightline depreciation and the corporate tax rate is 50%. A new machine generates revenue of $400 yearly for the next ten years and has expenses of $150 yearly for the next ten years. The cost of capital is 10%.

Reference no: EM132731643

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