Sensortech Saudi Manufacturing Company limited is considering purchasing a new injection-modeling machine for $250,000 to expand its production capacity. It will cost an additional $20,000 to do the site preparation. With the new injection-modeling machine installed, Sensortech Saudi Manufacturing expects to increase its revenue by $90,000. The machine will be used for five years, with an expected salvage value of $75,000. At an interest rate of 12%, would the purchase of injection-modeling machine be justified? (Note: Initially, identify cash flows, calculate present value and apply the decision criteria).

(2.5 marks,) Sensortech Saudi Manufacturing Company limited is considering purchasing a new injection-modeling machine for $250,000 to expand its production capacity. It will cost an additional $20,000 to do the site preparation. With the new nection-modeling machine installed, Sensortech Saudi Manufacturing expects to increase its revenue by $90,000. The machine will be used for five years, with an expected salvage value of $75,000. At an interest rate of 12%, would the purchase of injection-mod eling machine be justified? Note ially, identify cash flows, calculate present value and apply the decision criteria) Question 4