Question
ABC is considering purchasing a new, machine. The machine will cost $32,000 and will be depreciated according to the 3-year MACRS schedule. It will be
ABC is considering purchasing a new, machine. The machine will cost $32,000 and will be depreciated according to the 3-year MACRS schedule. It will be sold for scrap metal after 3 years for $8,000. The grill will have no effect on revenues but will save Johnnys $16,000 per year in energy expenses. The tax rate is 35%. (Use MACRS depreciation schedule.)
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b. | What are total cash flows in years 1 to 3? (Negative amounts should be indicated by a minus sign. Do not round intermediate calculations. Round your answers to 2 decimal places.) |
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