Problem
Larson Manufacturing is considering purchasing a new injection-molding machine for $370,000 to expand its production capacity. It will cost an additional $25,000 to do the site preparation. With the new injection-molding machine installed, Larson Manufacturing expects to increase its revenue by S93,000 per year. The machine will be used for five years, with an expected salvage value of $67,000. At an interest rate of 8%, would the purchase of the injection-molding machine be justified?
The response should include a reference list. Double-space, using Times New Roman 12 pnt font, one-inch margins, and APA style of writing and citations.