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23 please show work Builtrite is considering the purchase of a new five-year machine worth $90,000. It will cout another $10,000 to install the machine
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Builtrite is considering the purchase of a new five-year machine worth $90,000. It will cout another $10,000 to install the machine and Builtrite will need to keep an extra $16,000 in inventory on hand due to the machines ethiciency. The current machine being used is 5 years old and originally cost $60,000 and is being depreciated down to zero over 10 year period the current machine were sold today, it could be sold for $45,000. In five years, the new machine is estimated to have salvage value of $30,000. Two employees will need to be trained for the new machine at a cost of $4000. The new machine is expected to produce $80,000 in annual savings. Builtrite is in the 34% tax bracket What is the terminal cash flow for the new machine? $52,200 $35,800 $31,800 $26,800 MacBook Air work
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