Martin D$.$ Martian Inc. is considering the purchase of a new argyle sock knitting machine to replace a less automated one. The new machine will cost $$250,000$ plus $$30,000$ for shipping and $$16,000$ installation. The machine being replaced was purchased five years ago for $$180,000$ and depreciated as a $7-$year MACRS property. It can be sold for $$64,000.$ Martin has a marginal tax rate of $40\%.$ Compute the NINV for the project. Use the rounded MACRS schedule listed below: $(7-$Year Depreciation Schedule: $14\%,25\%,18\%,12\%,9\%,9\%,9\%,4\%)$

Question $2$Answer

a$.$

$$241,760\mathrm{.}00$

b$.$

$$385,000\mathrm{.}00$

c$.$

$$251,742\mathrm{.}86$

d$.$

$$259,560$