Should the machine be? purchased

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A firm is considering purchasing a machine that costs ?$71000 . It will be used for six? years, and the salvage value at that time is expected to be zero. The machine will save ?$42000  per year in? labor, but it will incur ?$9000  in operating and maintenance costs each year. The machine will be depreciated according to? five-year MACRS. The? firm's tax rate is 35 ?%, and its? after-tax MARR is 15 ?%. Should the machine be? purchased?

Reference no: EM132037327

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