et savings 11. Massey Machine Shop is considering a four-year project to improve its production efficiency. Buying a new machine press for $640,000 is estimated to result in $270,000 in annual pretax cost savings. The press falls in the MACRS five-year class, and it will have a salvage value at the end of the project of $70,000. If the shops tax rate is 35% and its discount rate is 14% should Massey buy and install the machine press? (10 Points) / 2 Co=-6400OT 3 4. Buy Press -640k Ci=220 300 K C2 = 247180 640X12 1208221660X1926OX163 C3 = 218 508 Daprication st sale of Pror CL = 2855/2 246800 - 71680 43008 - 25805 = 14 84207 NPV+CPT= 59975 775500 175500 175500 175500 IRR+CPT - 18.36 FLOK 220300247180 218508265512 Book Value o Poeng out thens 4 years = C1152 +0575 x 640000 = 110,592 sold at the end for $10000 which is 40,592 les Tos Benefit = 40,592 x 0.35=14,207 Sale Benefit = 70,000+16207 = 80207 ince NPV is positive & PR as higher than the discount state of Act of capital, Massey should buys install the machine pere 12. Discuss the advantages and disadvantages of Sole Proprietorship, LLC and S Corp. (2 Points) Sale Preoperstarship ElconPastriotip coporation Advantages Single Tocation single taratese linisted teability advantazes Kriterited liabilit ulicabied basin Double Torton 13. Discuss the advantages and disadvantages about the payback method. (3 Points) et savings 11. Massey Machine Shop is considering a four-year project to improve its production efficiency. Buying a new machine press for $640,000 is estimated to result in $270,000 in annual pretax cost savings. The press falls in the MACRS five-year class, and it will have a salvage value at the end of the project of $70,000. If the shops tax rate is 35% and its discount rate is 14% should Massey buy and install the machine press? (10 Points) / 2 Co=-6400OT 3 4. Buy Press -640k Ci=220 300 K C2 = 247180 640X12 1208221660X1926OX163 C3 = 218 508 Daprication st sale of Pror CL = 2855/2 246800 - 71680 43008 - 25805 = 14 84207 NPV+CPT= 59975 775500 175500 175500 175500 IRR+CPT - 18.36 FLOK 220300247180 218508265512 Book Value o Poeng out thens 4 years = C1152 +0575 x 640000 = 110,592 sold at the end for $10000 which is 40,592 les Tos Benefit = 40,592 x 0.35=14,207 Sale Benefit = 70,000+16207 = 80207 ince NPV is positive & PR as higher than the discount state of Act of capital, Massey should buys install the machine pere 12. Discuss the advantages and disadvantages of Sole Proprietorship, LLC and S Corp. (2 Points) Sale Preoperstarship ElconPastriotip coporation Advantages Single Tocation single taratese linisted teability advantazes Kriterited liabilit ulicabied basin Double Torton 13. Discuss the advantages and disadvantages about the payback method. (3 Points)