Your firm needs a computerized machine tool lathe that costs $50000 requires $10000 in installation and another $12000 in maintenance for each year of its 3years life. After 3 years this machine will be replaced. The machine falls into the MACRs 3 years class life category. Assume a tax rate is 30 percent and a discount rate of 12 percent. If the lathe can be sold for $7000 at the end of the 3 year, what is the after tax salvage value

Logout Successful Managerial Finance Spring 2017 Managerial Maame Effe Essandoh 2018 12 1 3. You are evaluating two different machines. Machine A costs S10,000 has a ive year lide andl has an annual OCF (aher annual OCF (aho, ia) or $2.000 per year.? your disc oint rate is 14 percent, using EAC which machine wold you choose? Kano, taa) of $2.500 per yea. Mwan" ? costs $1(000 O Machine A O Machine t O Both machines A and Type here to search Logout Successful Managerial Finance Spring 2017 Managerial Maame Effe Essandoh 2018 12 1 3. You are evaluating two different machines. Machine A costs S10,000 has a ive year lide andl has an annual OCF (aher annual OCF (aho, ia) or $2.000 per year.? your disc oint rate is 14 percent, using EAC which machine wold you choose? Kano, taa) of $2.500 per yea. Mwan" ? costs $1(000 O Machine A O Machine t O Both machines A and Type here to search