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Question 7.T-Y-S.E: A drug store is looking into the possibility of installing a...

A drug store is looking into the possibility of installing a “24/7” automated prescription refill system to increase its projected revenues by \$ 20,000 per year over the next 5 years. Annual expenses to maintain the system are expected to be \$ 5,000. The system will have no market value at the end of its 5 -year life, and it will be depreciated by the SL method. The store’s effective income tax rate is 40 \%, and the after-tax MARR is 12 \% per year. What is the maximum amount that is justified for the purchase of this prescription refill system? (7.9)

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