You're evaluating a new electron microscope for the QA (quality
assurance) unit. The microscope will cost $19,000 to buy and
another $2,000 to install, and will be sold for $1,800 after 3
years. It falls into the 3-year MACRS class, with depreciation
rates as follows:
Year
1
2
3
4
Depreciation rate
33%
45%
15%
7%
The microscope will require an inventory of spare parts worth
$5,000. The equipment will not increase revenue, but will save the
company $10,000 in...