Question: please insert your answer (equations) as text that can be plugged into excel directly! Much appreciated Macloy Corp is about to purchase a machine for
please insert your answer (equations) as text that can be plugged into excel directly! Much appreciated
Macloy Corp is about to purchase a machine for their operations. The machine will cost $136000 plus $24000 for shipping and Installation and falls under the 3-year MACRS class. Net working capital will rise by $6700. Diana Thomason forecasts that revenues will increase by $136000 for each of the next 4 years and will then be sold (scrapped) for $20000 at the end of the fourth year, when the project ends. Operating costs will rise by 557000 for each of the next four years, Macloy is in the 38% tax bracket, You are required to take a decision upon your expectation for future cash flows whether to buy the machine or not
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