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A special machine can save $11,200 per year in cash operating expenses for the next 10...

A special machine can save $11,200 per year in cash operating expenses for the next 10 years. The cost is $44,000. No salvage value is expected. Assume the tax rate averages 2/7 of taxable income, straight-line depreciation is used, and the cost of capital = 10% . The CFAT is (round to the nearest dollar):

a. $11,200

c. $8,480

b. $9,258

d. $6,800

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ekkarill92 answered 1 year ago
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