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Builtrite LIS Considering the purchase of a new machine for God, add which would require a SGood installation Charge . Employees would need to go

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Builtrite LIS Considering the purchase of a new machine for God, add which would require a SGood installation Charge . Employees would need to go through a brief training Session to operate the machine properly which would cost $ 25, 400. In addition , an increase in net working capital of $ 30,000 would be required . The machine has an Expected life of 10 years and due to Efficiencies . labor costs are Expected to decrease $ 1.50, 000 annually (before depreciation and taxes ) . ASSUME Straight- line depreciation , a 34% marginal tax rate and a cost of capital of 1590. Should Builtrite [ purchase the machine ?"

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