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Case IBMC makes a machine that can be purchased for $10,000.Xomox has determined that it needs a new machine,and the IBMC model will save Xomox $6,000 per year.Xomox has a corporate tax rate of 34%.The five-year straight-line depreciation is used and the machine will be worthless after 5 years. However,one leasing company also can offer the same machine to Xomox for $2,500 per year for five year. slide 8slide 8 Case ƒ IBMC makes a machine that can be purchased for $10,000. Xomox has determined that it needs a new machine, and the IBMC model will save Xomox $6,000 per year. Xomox has a corporate tax rate of 34%. The five-year straight-line depreciation is used and the machine will be worthless after 5 years. However, one leasing company also can offer the same machine to Xomox for $2,500 per year for five year
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