A company wants to buy a new machine for $5 million. The machine can be used for 7 years. It will generate constant revenues of $1.3 million per year. The annual expenses on maintenance etc are $150,000. The salvage value is $200,000. The depreciation method used is the 150% Declining Balance method. The (after-tax) MARR is 12% and the corporate taxes are 30%. A) Should this project be accepted or not?

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