Question: please solve with hand written do not forget the depreciation rate of 20% The cost of a new machine is $110,000 and it is expected
The cost of a new machine is $110,000 and it is expected to reduce the labour cost by $30,000 per year. The salvage value of the machine at the end of year six is expected to be $20,000. If the after-tax MARR of the company is 9% and the tax rate is 55% and depreciation rate is 20%: a) Determine the exact after-tax IRR for this investment? b) Determine the approximate after-tax IRR? c) Should the company buy this machine
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