The Associated Press Co. is evaluating the proposed acquisition of a new 3D printing machine. The machines base price is

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answerhappygod
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The Associated Press Co. is evaluating the proposed acquisition of a new 3D printing machine. The machines base price is

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The Associated Press Co. is evaluating the proposed acquisition
of a new 3D printing machine. The machines base price is $250,000
and it would require another $20,000 for shipping and modification.
The machine falls into the MACRS 3-year class [33%, 45%, 15%, and
7%]. It is estimated that it can be sold for $60,000 after 3-years,
which is the life of the project. A one-time increase in net
working capital of $10,000 is required initially. The machine will
primarily save the company $80,000 per year in operating costs. The
tax rate is 35% and the required return is 10%. Should the company
purchase this machine?
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