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4 Corporate Finance SEM 1 AY 2022/2023 Project H requires the acquisition of a new machine. The machine's base price is $130,000, and it would

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Corporate Finance SEM 1 AY 2022/2023 Project H requires the acquisition of a new machine. The machine's base price is $130,000, and it would cost another $12,000 to modify it for special use. The cost to install the machine is $14,000. The machine falls into the MACRS 3 year class, and it would be sold after 3 years for $65,000. The machine would require an increase in net working capital (inventory) of $10,500. What is the cost of the machine to be depreciated for capital budgeting purposes? a. $156,000 b. $130,000 c. $166,500 d. $140.000 Corporate Finance SEM 1 AY 2022/2023 Project H requires the acquisition of a new machine. The machine's base price is $130,000, and it would cost another $12,000 to modify it for special use. The cost to install the machine is $14,000. The machine falls into the MACRS 3 year class, and it would be sold after 3 years for $65,000. The machine would require an increase in net working capital (inventory) of $10,500. What is the cost of the machine to be depreciated for capital budgeting purposes? a. $156,000 b. $130,000 c. $166,500 d. $140.000

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