Question 34 8 pts Kinston Industries is considering investing in a machine that will cost...
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Question 34 8 pts Kinston Industries is considering investing in a machine that will cost $140,000 and will last for three years. Assume that Kinston's new machine will be depreciated straight line to a salvage value of $5,000 at the end of year three. The machine will generate revenues of $120,000 each year and the cost of goods sold will be 50% of sales. Fixed cost is $15000. At the end of yearthree the machine will be sold for $15,000. The appropriate cost of capital is 8% and Kinston is in the 32% tax bracket. Edit View Insert Format Tools Table 12pt Paragraph
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