What the associated with the purchase of this machine

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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. Builtrite’s marginal tax rate is 34%.

What the RATFCF’s associated with the purchase of this machine?

Reference no: EM131300127

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