A company is considering purchasing a new piece of machinery at a cost ($50,000.) It is expected

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A company is considering purchasing a new piece of machinery at a cost $$50,000.$ It is expected to generate revenues of $$25,000$ per year for 4 years against $$1,500$ of annual operating expenses. The machinery is MACRS 3-year property. The tax rate is 40 percent. MARR is 10 percent. What is the EVA for year 3?

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