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M An automotive assembly factory is purchasing a new $324,000 machine to help speed up its assembly line. This machine is expected to generate $87.000

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M An automotive assembly factory is purchasing a new $324,000 machine to help speed up its assembly line. This machine is expected to generate $87.000 of constant dollar year O savings for each of the next 6 years. At the end of the 6 years, it will have negligible salvage value. Assume that the inflation rate is 2%, the machine depreciated using MACRS (3-year property class), and that the factory's after-tax real MARR is 14% The tax rate is 25%. Compute the IRR, and determine whether or not the factory should invest in this machine. Click here to access the TVM Factor Table calculator Click here to access the MACRS-GDS Property Classes, Click here to access the MACRS-GDS percentages page, Click here to access the MACRS-GDS percentages for 27.5-year residential rental property, Q Ac AC 96 no Q Carry all interim calculations to 5 decimal places and then round your final answer to 1 decimal place. The tolerance is 0.2% Should the automotive assembly factory invest in this machine? M An automotive assembly factory is purchasing a new $324,000 machine to help speed up its assembly line. This machine is expected to generate $87.000 of constant dollar year O savings for each of the next 6 years. At the end of the 6 years, it will have negligible salvage value. Assume that the inflation rate is 2%, the machine depreciated using MACRS (3-year property class), and that the factory's after-tax real MARR is 14% The tax rate is 25%. Compute the IRR, and determine whether or not the factory should invest in this machine. Click here to access the TVM Factor Table calculator Click here to access the MACRS-GDS Property Classes, Click here to access the MACRS-GDS percentages page, Click here to access the MACRS-GDS percentages for 27.5-year residential rental property, Q Ac AC 96 no Q Carry all interim calculations to 5 decimal places and then round your final answer to 1 decimal place. The tolerance is 0.2% Should the automotive assembly factory invest in this machine

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