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A company is considering the acquisition of machinery to pack production at a cost of $ 8 0 0 , 0 0 0 . To

A company is considering the acquisition of machinery to pack production at a cost of $800,000. To achieve the maximum level of efficiency of the machine, a certain degree of maintenance is necessary. The cost for this is set at a base of $3,000 during the first year. For the second year, the cost of maintenance is increased to $5,000. Due to the changes in technology, the company expects to sell the machinery at the end of the second year for $500,000. With this machine you can have a monthly saving of $25,000, for the salary and benefits of the employees that the machine will replace. For the second year, the savings will be an additional 20%. The company usually uses an opportunity cost of 25% to Investments of this type. Is it advisable to purchase this machinery? Evidence all your computations.

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