An automotive assembly factory is purchasing a new $320,000 machine to help speed up its assembly line. This machine is expected to generate $80,000 of constant dollar year O 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 3%, the machine depreciated using MACRS (3-year property class), and that the factory's after-tax real MARR is 12%. 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. % An automotive assembly factory is purchasing a new $320,000 machine to help speed up its assembly line. This machine is expected to generate $80,000 of constant dollar year O 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 3%, the machine depreciated using MACRS (3-year property class), and that the factory's after-tax real MARR is 12%. 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. %