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The Associated Press Co. is evaluating the proposed acquisition of a new 3D printing machine. The machines base price is $250,000 and it would require

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The Associated Press Co. is evaluating the proposed acquisition of a new 3D printing machine. The machines base price is $250,000 and it would require another $20,000 for shipping and modification. The machine falls into the MACRS 3-year class (33%, 45%, 15%, and 7%). It is estimated that it can be sold for $60,000 after 3-years, which is the life of the project. A one-time increase in net working capital of $10,000 is required initially. The machine will primarily save the company $80,000 per year in operating costs. The tax rate is 35% and the required return is 10%. Should the company purchase this machine

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