Question: A special - purpose machine tool set would cost $ 3 2 , 0 0 0 . The tool set will be financed by a

A special-purpose machine tool set would cost $32,000. The tool set will be financed by a $13,000 bank loan repayable in two equal annual installments at 12% compounded annually. The tool is expected to provide annual (material) savings of $32,000 for two years and is to be depreciated by the MACRS three-year recovery period. The tool will require annualO&M costs in the amount of $12,000. The salvage value at the end of the two years is expected to be $10,000. Assuming a marginal tax rate of 35% and MARR of 22%, what is the net present worth of this project? Is this project feasable? Solve with excel please

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