ABC, Inc is planning the purchase of new equipment that costs $181,384. The project is expected to last for 13 years. Each year, the new project is…

ABC, Inc is planning the purchase of new equipment that costs $181,384. The project is expected to last for 13 years. Each year, the new project is expected to sell 188 units for $451 per unit. The variable costs are expected to $85 per unit and the fixed costs are expected to be $17,190. The equipment will be depreciated on a straight-line basis over the 13-year life of the project. That is, the depreciation each year will be $181,384/13. Assuming a tax rate of

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