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Purchasing a new injection-moulding machine

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"Larson Manufacturing is considering purchasing a new injection-moulding machine to expand its production capacity. There is a one-time cost of $25,000 to perform site preparation for the machine, which will occur immediately. With the new injection-moulding machine installed, Larson Manufacturing expects to increase its annual revenue by $60,000. The machine will be used for 4 years and can be salvaged for $20,000 at the end of 4 years. If the company's MARR is 13.2%, what is the maximum amount that should be spent on purchasing the new injection-moulding machine?"

Reference no: EM131942168

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