Question: Table 116 Nuff Folding Box Company, Inc. is considering using a whing machine. The guing machine ceste 550.000 de metion coils of $2.500. The outley
Table 116 Nuff Folding Box Company, Inc. is considering using a whing machine. The guing machine ceste 550.000 de metion coils of $2.500. The outley would be partly fut by the sale of a king guer. The stinger original cost $10,000 and a lawyears old en depreciated under MACRS nga fe year recovery schedule and currently be wolf for $15.000 The exiting gue has remaining of five years, heldunnar 5. ne existing machine's market value would be to Overis five you the the new machine should reduce spring costs feeding depreciation by $17.000 per year. Training costs of employees who were the new machine webes one time out of 35.000 which would be readed in the day. The new machine will be depreciated under MACRS inga hepar recovery period. The firm ha 12 percent cost of art and a 40 percent be on ordinary income and capital gains The internal rate of rebum for the (Son The OA greater than 12 per Os between 10 and 11 percent DC been and to per OD behander
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