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Initial purchase cost of machines Useful life from acquisition date (years) Expected annual cash operating costs Variable cost per can of jam Old Machine
Initial purchase cost of machines Useful life from acquisition date (years) Expected annual cash operating costs Variable cost per can of jam Old Machine $ 150,000 $ 8 New Machine 190,000 5 $ Total fixed costs $ 0.25 $ 25,000 $ 0.19 24,000 Depreciation method for tax purposes MACRS, 7 year asset MACRS, 5 year asset Estimated disposal value of machines January 1, 2014 December 31, 2018 es es $ 68,000 $ 190,000 $ 12,000 $ 22,000 Expected cans of jam produced and sold each year 475,000 475,000
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