Question: An injection molding machine can be purchased and installed for $90,000. It is in the seven-year GDS property class and is expected to be kept

An injection molding machine can be purchased and installed for $90,000. It is in the seven-year GDS property class and is expected to be kept in service for eight years. It is believed that $10,000 can be obtained when the machine is disposed of at the end of year eight. The net annual value added (i.e., revenues less expenses) that can be attributed to this machine is constant over eight years and amounts to $15,000. An effective income tax rate of 25% is used by the company, and the after-tax MARR equals 15% per year Click the icon to view the GDS Recovery Rates (rk) for the 7-year property class a. What is the approximate value of the company's before-tax MARR? The before-tax MARR is LY. (Round to the nearest whole number.) b. Determine the GDS depreciation amounts in years one through eight. (Round to the nearest dollar.) Year Depreciation. S 4 c. What is the taxable income at the end of year eight that is related to capital investment? The taxable income at the end of year eight is S- (Round to the nearest dollar.) d. Set up a table and calculate the ATCF for this machine. (Round to the nearest dollar.) EOY BTCF,$ Depreciation, $ T(25%), $ ATCE $ - 90,000 PW(15%), $ - 90,000 -90,000 4 10,000 PW( 15%) of ATCF = e. Should a recommendation be made to purchase the machine? The project should be
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