Installation of a new machine


ADC company is considering the installation of a new machine that costs $150,000. The machine is expected to lead to net income of $44,000 per year for the next five years. Using straight-line depreciation , $0 salvage value, and an effective income tax rate of 29%, find the after-tax rate of return for this investment. If the company's after tax MARR rate is 12%, would this be a good investment or not?

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Basic Statistics: Installation of a new machine
Reference No:- TGS0873222

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