The firm has a 25 percent tax rate and a 9 percent cost of capital.

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The Woodruff Corporation purchased a lot of equipment three years ago for $248,000. It has anasset deterioration place (ADR) midpoint of eight years. The old equipment can be sold for $90,250. A new lot of equipment can be purchased for $318,000. It so has an ADR of eight years. Assume the old and new equipment would afford the aftercited unconditional gains (or losses) aggravate thenext six years: Year New Equipment IOld Equipment$78,750I $24,50076,500I 15,00068,750I 9,50061,000I 7.00049,750I 7,00045,250I -8,500 The firm has a 25 percent tax rebuke and a 9 percent require of excellent. What is the net require ofthe new equipment? Round your explanation to two decimal places. 230,454.00 What is the offer esteem of incremental benefits? Round your explanation to two decimal places. 187,786.22 What is the NPV of this resuscitation conclusion? Round your explanation to two decimal places. 43,495 8.34

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