Question: Builtrite is considering purchasing a new machine that would cost $60,000 and the machine would be depreciated (straight line) down to $0 over its five
Builtrite is considering purchasing a new machine that would cost $60,000 and the machine would be depreciated (straight line) down to $0 over its five year life. At the end of five years it is believed that the machine could be sold for $15,000. The machine would increase EBDT by $42,000 annually. Builtrites marginal tax rate is 34%. What the RATFCFs associated with the purchase of this machine? A) $31,800 B) $27,840 C) $33,520 D) $30,780 What is the TCF associated with the purchase of this machine? A) $9,900 B) $5,100 C) $7,500 D) $0
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