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Gamma IncIs Considering the Purchase of a Machine Costing $450,000, Having

Question 87

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Gamma Inc.is considering the purchase of a machine costing $450,000, having a useful life of five years.Depreciation would be recognized using the straight-line method, and the machine would have no residual value at the end of its useful life.The estimated total net income from the machine is $600,000.The average investment for the machine is:


A) $600,000.
B) $150,000.
C) $225,000.
D) $300,000.

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