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Compute the present worth of the machine

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Question - Jojo shop is investing in a new machine that will cost $60,000. They estimate that the unit will produce annual revenues of $17,000 for each of the next 6 years. The machine unit will have a negligible salvage value at the end of the next 6 years. Assuming a tax rate of 24%, a MACRS 5-year property class, 50% bonus depreciation, and an after-tax MARR of 6% compute the present worth of the machine and determine whether or not Jojo's shop should invest in the machine?

Reference no: EM133074196

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