Considering investing in new equipment for the production

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Reference no: EM131062900

Sports EX Inc. is a Sports Shoes Company which is considering investing in a new equipment for the production of a new line of Tennis and Football Shoes for its elite customers. The new equipment will costs $250,000, and an additional $80,000 is needed for installation. The equipment which falls into the MACRS 3-yr class, would be sold after three years for $35,000. (Hint: Since, this equipment will not be fully depreciated, because it is sold in year 3, you ignore the last tranche of the depreciation structure.)

Reference no: EM131062900

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