Question: A firm is considering purchasing a machine that costs $60, 000. It will be used for six years, and the salvage value at that time

A firm is considering purchasing a machine that costs $60, 000.

A firm is considering purchasing a machine that costs $60, 000. It will be used for six years, and the salvage value at that time is expected to be zero. The machine will save $41, 000 per year in labor, but it will incur $14, 000 in operating and maintenance costs each year. The machine will be depreciated according to five-year MACRS. The firm's tax rate is 40%, and its after-tax MARR is 14%. Should the machine be purchased? & The present worth of the project is (Round to the nearest dollar.)

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