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An injection molding machine can be purchased and installed for $90,000. It is in the seven-year...

An injection molding machine can be purchased and installed for $90,000. It is in the seven-year GDS property class and is expected to be kept in service for eight years. It is believed that $10,000 can be obtained when the machine is disposed of at the end of year eight. The net annual value added (i.e., revenues less expenses) that can be attributed to this machine is constant over eight years and amounts to $15,000. An effective income tax rate of 40% is used by the company, and the after-tax MARR equals 15% per year.

What is the MV of the investment at end of year 4?

What is the PW of the investment? Hint, it is negative

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ekkarill92 answered 2 years ago
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