PLEASE DO NO USE EXCEL, as we are not able to use excel on our
test
XYZ company is considering a new machine that costs $300,000 and
would reduce pre-tax manufacturing costs by $108,000 annually. XYZ
would use the 3-year MACRS method to depreciate the machine, and
management thinks the machine would have a value of $23,000 at the
end of its 5-year operating life. The applicable depreciation rates
are 33%, 45%, 15%, and 7%. The net operating working capital...