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Builtriteis considering purchasing a new machine that would cost $60,000 and the machine would be depreciated (straight line) down to $0 over its four year
Builtriteis considering purchasing a new machine that would cost $60,000 and the machine would be depreciated (straight line) down to $0 over its four year life.At the end of four years it is believed that the machine could be sold for $12,000.The machine would increase EBDT by $42,000 annually.Builtrite'smarginal tax rate is 34%.
What the RATFCF's associated with the purchase of this machine?
$32,820
$29,940
$31,800
$30,452
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