An automotive assembly factory is purchasing a new $285,000 machine to help speed up its assembly fine. This machine is expected to generate $60,000 of constant dollar year savings for each of the next 6 years. At the end of the 6 years, it will have negligible salvage value. Assume that the inflation rate is 4%, the machine depreciated using MACRS (3-year property class), and that the factory's after-tax real MARR is 7%. The tax rate is 25% Compute the IRR, and determine whether or not the factory should invest in this machine. Click here to access the TVM Factor Table calculator. Click here to access the MACRS-GDS Property Classes Click here to access the MACRS-GDS percentages page. Click here to access the MACRS-GDS percentages for 27.5-year residential rental property. Carry all interim calculations to 5 decimal places and then round your final answer to 1 decimal place. The tolerance is +0.2% Should the automotive assembly factory invest in this machine? e Textbook and Media Save for Later Attempts: 0 of 1 used Submit Answer An automotive assembly factory is purchasing a new $285,000 machine to help speed up its assembly fine. This machine is expected to generate $60,000 of constant dollar year savings for each of the next 6 years. At the end of the 6 years, it will have negligible salvage value. Assume that the inflation rate is 4%, the machine depreciated using MACRS (3-year property class), and that the factory's after-tax real MARR is 7%. The tax rate is 25% Compute the IRR, and determine whether or not the factory should invest in this machine. Click here to access the TVM Factor Table calculator. Click here to access the MACRS-GDS Property Classes Click here to access the MACRS-GDS percentages page. Click here to access the MACRS-GDS percentages for 27.5-year residential rental property. Carry all interim calculations to 5 decimal places and then round your final answer to 1 decimal place. The tolerance is +0.2% Should the automotive assembly factory invest in this machine? e Textbook and Media Save for Later Attempts: 0 of 1 used Submit