Business, 14.10.2021 02:20 lnr919

The ABC Corporation is considering the purchase of a number of pipe-laying machines in order to facilitate the operation in a new pipeline project expected to last six years. Each machine will cost $26,000 and will have no salvage value after the project is complete. The firm uses the straight line depreciation method and pays annual income taxes on profits at the rate of 34%. Required:
If the firm's MARR is 8%, which is the minimum uniform annual benefit before tax that must be generated by this machine in order to justify its purchase?

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