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Maryherry Corp, is planning on purchasing a certain machine. The expected cost of this machine...

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Accounting

Maryherry Corp, is planning on purchasing a certain machine. The expected cost of this machine is $100,000, and it is expected to have a useful life of 8 years winh an estimated salvage value of $20,000. The mnchine is expected to produce cash. savings of $36,000 per year in reduced labor costs and the cash operating costs to run this machine are estimated to be $12,000 per year. Assuming Mayberry Corp is in the 40% tax bracket and has a minimum desired rate of return of 10% on this investment, determine the:
(a)(a) payback period, (b) ARR, and (c) NPV {IGNORING TAXES}, and (ii)(a) payback period, (b) ARR, and (c) NPV {ASSUMING TAXES }.
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