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You are evaluating the replacement of a wizzometer. The base price of a new wizzometer is $56,000 and it would cost $12,000 for shipping and
You are evaluating the replacement of a wizzometer. The base price of a new wizzometer is $56,000 and it would cost $12,000 for shipping and installation. The equipment is MACRS 3 year (depreciation rates are 33%,45%,15%,and 7%). After 3 years the wizzometer can be sold for $8,000. The equipment would necessitate a $2,000 increase in NWC and would save the company $35,000 per year for 3 years. The company
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