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You should evaluate Van Avery Prep's R&D prism spectroscope offering. The base price is $140,000 and another $30,000 will be required to modify the equipment

You should evaluate Van Avery Prep's R&D prism spectroscope offering. The base price is $140,000 and another $30,000 will be required to modify the equipment for the firm's special use. The equipment belongs to the 3-year MACRS class (33%, 45%, 15%). and will be sold in 3 years for $60,000. The equipment will require an increase in net working capital of $8,000 (spare parts). The project will not impact earnings, but it should save the firm $50,000 a year before payroll taxes. The marginal federal plus state tax rate is 30 percent. Answer True/Fa select only one not yet answered Marked at 25.00 1 2 Flag question Is it reasonable to buy a prism spectroscope? Why. Now let's say you get additional information that it will be sold in 3 years for $60,000 with a 50% chance and a 50% chance i. Has your decision changed?

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