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A firm is adding a new blast furnace to its operation. The new furnace will cost $29.00 million and will require a few old pa
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Answer #1

the following is the calculation:

sale value of parts 409,688
less:book value of parts 48,715
taxable value 360,973
less: tax @35% (126,340.55)
after tax value 234,632.45
add; book value 48,715
opportunity cost of using the parts 283,347.45
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