Question: A special - purpose machine tool set would cost $ 3 2 , 0 0 0 . The tool set will be financed by a
A specialpurpose machine tool set would cost $ The tool set will be financed by a $ bank loan repayable in two equal annual installments at compounded annually. The tool is expected to provide annual material savings of $ for two years and is to be depreciated by the MACRS threeyear recovery period. The tool will require annualO&M costs in the amount of $ The salvage value at the end of the two years is expected to be $ Assuming a marginal tax rate of and MARR of what is the net present worth of this project? Is this project feasable? Solve with excel please
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