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Mickey's Supply from question #5 is looking is at upgrading technology to allow for faster service of customers. The price of the machine being considered
Mickey's Supply from question #5 is looking is at upgrading technology to allow for faster service of customers. The price of the machine being considered is $210,000. Installation costs are $20,000. They expect the increased sales (net of expenses except for depreciation) or EBITDA to be 80,000 for year 1, 130,000 year 2, and 70,000 year 3. The machine can be sold for $40,000 at the end of the project. Tax 30%. WACC is 10.8%
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