Question: 35. GO Tutorial A company is considering purchasing a new piece of machinery at a cost $50,000. It is expected to generate revenues of $25,000

35. GO Tutorial 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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