IBP Inc. is considering establishing a new machine to automate a meatpacking process.

The machine will save $$55,000$ in labor annually. The machine can be purchased for

$$225,000$ today and will be used for $10$ years. It has a salvage value of $$12,500$ at the end

of its useful life. The new machine will require an annual maintenance cost of $$11,000.$

The corporation has a minimum rate of return of $9\%.$ Do you recommend automating the

process?