Question
Purple Haze Machine Shop is considering a four-year project to improve its production efficiency. Buying a new machine press for $559298 is estimated to result
Purple Haze Machine Shop is considering a four-year project to improve its production efficiency. Buying a new machine press for $559298 is estimated to result in $208964 in annual pretax cost savings. The press falls in the MACRS five-year class, and it will have a salvage value at the end of the project of $104637. The shop's tax rate is 32 percent. What is the OCF for year 4?(Round your final answer to the nearest dollar amount. Omit the "$" sign and commas in your response.For example, $123,456.78 should be entered as 123457.)
Modified ACRS Depreciation Allowances (Table 10.7)
Year Three-Year Five-Year Seven-Year
1 33.33% 20.00% 14.29%
2 44.45 32.00 24.49
3 14.81 19.20 17.49
4 7.41 11.52 12.49
5 11.52 8.93
6 5.76 8.92
7 8.93
8 4.46
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