Question: Larson Manufacturing is considering purchasing a new injection - molding machine for $ 2 3 0 comma 0 0 0 2 3 0 , 0

Larson Manufacturing is considering purchasing a new injection-molding machine for $230 comma 000230,000 to expand its production capacity. It will cost an additional $25 comma 00025,000 to do the site preparation. With the new injection-molding machine installed, Larson Manufacturing expects to increase its revenue by $93000 per year. The machine will be used for sixsix years, with an expected salvage value of $74 comma 00074,000. At an interest rate of 11%, would the purchase of the injection-molding machine be justified?

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