Question: Question 14 7 Points Al Falah Incorporated company is considering a new machinery system that will initially cost $1 million. It will save $300,000 per

 Question 14 7 Points Al Falah Incorporated company is considering a

Question 14 7 Points Al Falah Incorporated company is considering a new machinery system that will initially cost $1 million. It will save $300,000 per year in invertory and warehousing costs. The system is expected to last for four years and will be depreciated using 3-year MACRs. The system is expected to have a salvage value of $60,000 at the end of year 4. There is no impact on net working capital. The marginal tax rate is 25%. The required return is 10% Evaluate whether Al Falah should purchase this Machine or not. The 3-Year MACRS Tax Schedule is given as: Year MACRS percent 1.3333 2.4445 3.1481 4.0741 Ilse the editor to format your

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