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2) You are evaluating two different aluminum milling machines.
The Alumina I costs $240,000, has a three-year life, and has pretax
operating costs of $63,000 per year. The Alumina II costs $420,000,
has a five-year life, and has pretax operating costs of $36,000 per
year. For both milling machines, use straight-line depreciation to
zero over the project's life and assume a salvage value of $40,000.
If your tax rate is 35 percent and your discount...