QUESTION 1 The McVay Inc. is evaluating a proposal of acquiring a new milling machine. The machine's purchase price is $140,000. the machine is acquired, the firm will have to incur another $2,000 for shipping and installation The machine falls into the MACRS three-year classification (with 33, 45, 16, and 07 as the respective codes). The project would require an increase in networking capitalimantory of $10,000 of time. The milling machine would increase the firm's before tax annual sales revenues and operating costs by $100.000 and $40,000, respectively. It is expected to be used for three years and then be sold for $20,000 Miler's marginal tax rate is 10% and the project cost of capital is 14%. Should the proposal becepted? Why or why not? Justify your answer with numerical work (Please note that I missed the type of the problem, leaving you with no option to type up your simple response to the sample problem. I will ensure that this will not happen when you take the final exam) Attach File Browse My Computer Browse Content Collection QUESTION 1 The McVay Inc. is evaluating a proposal of acquiring a new miling machine. The machine's purchase price is $148,000. the machine is acquired, the firm will have to incur angther $2,000 for shipping and installation The machine falls into the MACRS three-year classification (with 33.45, 15, and 07 as the respective codes). The project would require an increase in networking capital intory of $10.000 time. The milling machine would increase the firm's before tax annual sales revenues and operating costs by $100,000 and $40,000, respectively. It is expected to be used for three years and to be sold for $20,000 Miler's marginal tax rate is 10% and the projects cost of capital is 14%. Should the proposal be accepted? Why or why not? Justify your answer with numerical work. (Please note that miscassified the type of the problem, leaving you with no option to type up your simple response to this sample problem. I will ensure that this will not happen when you take the final exam.) Attach File Browse My Computer Browse Content Collection Chick Save and submit to sow and unit Chek Sow All Awon alla QUESTION 1 The McVay Inc. is evaluating a proposal of acquiring a new milling machine. The machine's purchase price is $148,000. W the machine is acquired, the firm will have to our other $2,000 for shipping and installation The machine fals into the MACRS three-year classification (with 33, 45, 15, and 07 as the respective codes). The project would require an increase in networking capital cantory of $10,000 time. The miling machine would increase the firm's before tax annual sales revenues and operating costs by $100.000 and $40,000, respectively. It is expected to be used for three years and to be sold for $20,000 Miler's marginal tax rate is 10% and the projects cost of capital is 14%. Should the proposal becepted? Why or why not? Justify your answer with numerical work (Please note that I missed the type of the problem, leaving you with no option to type up your simple response to a sample protiem. I will ensure that this will not happen when you take the final exam) Attach File Browse My Computer Browse Content Collection
