Scarlett Industries is considering the purchase of a new machine for one of its actories....
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Scarlett Industries is considering the purchase of a new machine for one of its actories. The machine's cost is $300,000 and it is expected to save the factory $100,000 annually in operational costs. The machine's lifespan is 5 years, the company uses straight-line depreciation, and intends to fully depreciate the machine. However, he machine's salvage value will be $50,000 after 5 years. The company discount rate s 12% and its tax rate is 30%. Evaluate the cashflows by calculating the NPV and RR to determine if this machine is a good investment. Lastly, create a Data Table which shows the NPV of this investment for the discount rates of 0%,5%,10%,15%, 20% and 25%. Show your excel work and formulas and please provide a screen shot
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