Determine the net present worth of the investment

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Reference no: EM131975238

Question: Your firm is considering the installation of a special new machine for beverage manufacture that costs $140,000. The machine is expected to generate net income of $42,000 per year for the next 4 years. Using MACRS depreciation, SO salvage value, a federal tax rate of 34%, a state tax rate of 8.25%, and an after-tax MARR of 12%. determine the net present worth of this investment.

Reference no: EM131975238

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