Question: A new high-speed processing unit costing $1.3 million is being considered as a potential investment designed to increase the firm's output capacity. This new piece

A new high-speed processing unit costing $1.3 million is being considered as a potential investment designed to increase the firm's output capacity. This new piece of equipment will have an estimated usable life of 12 years and a $0 estimated salvage value. If the processing unit is bought, Taylor's annual revenues are expected to increase to $2.1 million and annual expenses (exclusive of depreciation) will increase to $900,000. Annual depreciation will increase to $360,000. Assume that no increase in net working capital will be required as a result of this project

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