The CFO of Acme Manufacturing is considering the purchase of a special diamond-tipped cutting tool. This tool has the following initial costs to put into service. Acme will use cash to pay for all of these expenses, some of which was borrowed on a long-term credit line with the local bank. The CFO has been directed by Acme to use the MACRS depreciation method with a GDS recovery period of 5 years. Assume the tool is sold in the fifth year for $24,000. Is this a good investment? Click the icon to view the additional data on the revenues, expenses, and interest rates. Click the icon to view the GDS Recovery Rates (rk). Complete the blank cells in the table below. (Round to the nearest dollar.) \begin{tabular}{ll} \hline Purchase price & $340,000 \\ Delivery charge & $6,400 \\ Installation cost & $29,000 \\ Employee training & $10,000 \\ \hline & \\ \hline Increased annual revenue & $136,000 \\ Increased annual expenses & $34,000 \\ After-tax MARR & 11% \\ Effective tax rate & 23% \\ Sales price of the tool in yr. 5 & $24,000 \\ Projected salvage value in yr. 5 & $10,000 \\ \hline \end{tabular} These rates are determined by applying the 200% DB method (with switchover to the SL method) to the recovery period with the nalf-year convention applied to the first and last years. Rates for each period must sum to 1.0000. These rates are determined with the 150% DB method instead of the 200% DB method (with switchover to the SL method) and are rounded off to four decimal places. The CFO of Acme Manufacturing is considering the purchase of a special diamond-tipped cutting tool. This tool has the following initial costs to put into service. Acme will use cash to pay for all of these expenses, some of which was borrowed on a long-term credit line with the local bank. The CFO has been directed by Acme to use the MACRS depreciation method with a GDS recovery period of 5 years. Assume the tool is sold in the fifth year for $24,000. Is this a good investment? Click the icon to view the additional data on the revenues, expenses, and interest rates. Click the icon to view the GDS Recovery Rates (rk). Complete the blank cells in the table below. (Round to the nearest dollar.) \begin{tabular}{ll} \hline Purchase price & $340,000 \\ Delivery charge & $6,400 \\ Installation cost & $29,000 \\ Employee training & $10,000 \\ \hline & \\ \hline Increased annual revenue & $136,000 \\ Increased annual expenses & $34,000 \\ After-tax MARR & 11% \\ Effective tax rate & 23% \\ Sales price of the tool in yr. 5 & $24,000 \\ Projected salvage value in yr. 5 & $10,000 \\ \hline \end{tabular} These rates are determined by applying the 200% DB method (with switchover to the SL method) to the recovery period with the nalf-year convention applied to the first and last years. Rates for each period must sum to 1.0000. These rates are determined with the 150% DB method instead of the 200% DB method (with switchover to the SL method) and are rounded off to four decimal places