Capital Budget Problem - project of machine purchase, operation and termination. Calculate the cost to enter...

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Capital Budget Problem - project of machine purchase, operation and termination. Calculate the cost to enter project. Buy machine Transport in Set up $100,000 15,000 5.000 Calculate the annual benefit of operating the new machine. Labor savings per year Depreciation (3 year MACRS) Year 1 33% $25,000 Year 2 45% Year 3 15% Year 4 7% Tax rate 30% Benefit Year 1 Year 2 Year 3 Capital Budget Problem - project of machine purchase, operation and termination. Calculate the cost to enter project. Buy machine Transport in Set up $100,000 15,000 5.000 Calculate the annual benefit of operating the new machine. Labor savings per year Depreciation (3 year MACRS) Year 1 33% $25,000 Year 2 45% Year 3 15% Year 4 7% Tax rate 30% Benefit Year 1 Year 2 Year 3