The company is evaluating new equipment that will cost $2,000,000. The equipment is in the MACRS...

The company is evaluating new equipment that will cost $2,000,000. The equipment is in the MACRS 3-year class and will be sold after 3 years for $150,000. Use of the equipment will increase net working capital by 200,000. The equipment will save $850,000 in operating costs each year for 3 years. The company's tax rate is 25 percent and its cost of capital is 12%. Please show formulas in Excel.

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jeff jeffy answered 4 weeks ago

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