See attached file.
Dunder-Mifflin, Inc is analyzing the potential profitability of three printing jobs put up for bid by the State Department of Revenue:
1. the company's marginal city plus state plus federal tax rate is 50%
2. each job is expected to have a 6 yr. life
3. firm uses straight line depreciation
4. the average cost of capital is 14%
5. the jobs have the same risk as the firms other business
6. the company has already spent $60,000 on developing preceding data.
This $60,000 has been capitalized and will be amortized over the life of the project
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