I need the solution or computation Boyertown Industrial Tools is considering a three-year project to...
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I need the solution or computation Boyertown Industrial Tools is considering a threeyear project to improve its production efficiency. Buying a new machine press for $ is estimated to result in
$ in annual pretax cost savings. The press falls in the MACRS fiveyear class, and it will have a salvage value at the end of the project of $ The press also
requires an initial investment in spare parts inventory of $ along with an additional $ in inventory for each succeeding year of the project. If the tax rate is
percent and the discount rate is percent, should the company buy and install the machine press? Why or why not?
Table Modified ACRS depreciation allowances
Yes; the NPV is $
Yes; the NPV is $
No; the NPV is $
No; the NPV is $
No; the NPV is $
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