A firm is considering purchasing a machine that costs 65 000 It will be used for six years and the salvage value me is expected

Question

A firm is considering purchasing a machine that costs 65 000 It will be used for six years and the salvage value me is expected to be zero The machine will save 45 000 per year in labor but it will incur 9 000 in operating a naintenance costs each year The machine will be depreciated according to five year MACRS The firm s tax rate 28 and its after tax MARR is 14 Should the machine be purchased Click the icon to view the MACRS depreciation schedules Click the icon to view the interest factors for discrete compounding when i 14 per year he present worth of the project is Round to the nearest dollar

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