4. The Board members of Work Lumber Mill company is considering a vision system to...

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Accounting

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4. The Board members of Work Lumber Mill company is considering a vision system to spot and remove Defects in incoming wood. Purchase and installation of the system costs $70,000 annual savings due to improved quality and material utilization are $55,000 per year. The system will be depreciated by MACRS using a 7 year recovery period class. Annual Maintenance expenses will be $35,000. The system will be used for 10 years and will have a $10,000 salvage value in year 10. The effective tax rate is 40% per year. Calculate CFBT and CFAT

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