A firm is considering purchasing a machine that costs $59,000. It will be used for...
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A firm is considering purchasing a machine that costs $59,000. It will be used for six years, and the salvage value at that time is expected to be zero. The machine will save $43,000 per year in labor, but it will incur $13,000 in operating and maintenance costs each year. The machine will be depreciated according to five-year MACRS. The firm's tax rate is 35%, and its after-tax MARR is 13%.
What is the present worth of hte project?
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