The president of Mara Corporation has asked you to evaluate the proposed acquisition of a new machine. The machine's price is $300,000 with shipping and installation costa of $60,000. The machine will be depreciated to a zero-salvage value iver 6 years on a straight line basis. Purchase of the machine would require an increase in net operating working capital of $40,000. The machine would increase the firm's before tax revenues by $100,000 per year but would increase operating costs by $25,000 per year. The machine is expected to be used for six years and then sold for $30,000. The firm's marginal tax rate is 20%, and the project's cost of capital is 15%.

- Should the new machine be purchase? Show computations.

**Please show full process and equations. Thanks **