Considering purchasing new? injection-molding machine

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Larson Manufacturing is considering purchasing a new? injection-molding machine for ?$200,000 to expand its production capacity. It will cost an additional ?$20,000 to do the site preparation. With the new? injection-molding machine? installed, Larson Manufacturing expects to increase its revenue by ?$82,000 per year. The machine will be used for seven ?years, with an expected salvage value of ?$76,000 . At an interest rate of 15 ?%, would the purchase of the? injection-molding machine be? justified?

Reference no: EM131255856

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