What is the ATCF rate of return for machine that costs 300,000,lasts for 8 years, has zero salvage value, and is classified as 5year MACRS property? The machine will be purchased with a 20.0%down payment and a four year loan for the remaining amount at anannual interest rate of 11.50%. The machine produces net revenuesafter deducting direct and indirect expenses but not depreciationof 46,000 in year 1, 120,000 in years 2 to 6, 60,000 in year 7, and40,000 in year 8. Use a tax rate of 21.00%
