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babasai
Jul 10, 2008, 08:23 AM
Mike owns an AC repair shop. He is planning to buy a new computerised machine for his business. It would cost $50,000 and is likely to increase his revenue by $5,000 per year. The expected life of the machine is 12 years. Additionally, the tax rate for Mike is around 35%. He can borrow the $50,000 at 6% for 10 years. what is the viability of the project?