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A currently owned machine was purchased 12 years ago for exist70,000 with an estimated life of 15 years and exist10,000 salvage. SL depr has been

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A currently owned machine was purchased 12 years ago for exist70,000 with an estimated life of 15 years and exist10,000 salvage. SL depr has been used. This machine produces parts at the rate of 3.52 hours per 100 parts, and has an efficiency rating of 80%. The machine requires 3 operators paid a wage rate of exist14.56 per hour. The machine is run on one shift only, with overtime scheduled as necessary. Demand for these parts averages 50,000 parts per year. Overtime pay is 50% greater than the base rate. Labor costs are increasing at 4.7% per year. The parts sold last year for exist2.60 per part. Future price increases are expected to average 6.1% per year. Maintenance last year was exist4500. The machine can be kept running but maintenance will increase by 11% per year. The current market value for this machine is exist25,000. The tax rate is 40%. a. How much will be realized for this machine after taxes if it were to be sold today? b. Complete the following table. Assume the machine is sold in 3 years for exist5000. c. Calculate the inflation adjusted rate of return (io) if this machine is kept and then sold at the end of year 15 (three years from now). Inflation is expected to be 3.2, 4.7, and 3.6% for the next 3 years

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