A company is considering the installation of a new machine


A company is considering the installation of a new machine that costs $150,000. The machine is expected to lead to new net income of $40,000 per year for the next five years. Using SL depreciation, $0 salvage value, and an effective income tax rate of 50%; determine the after-tax rate of return for this investment. If the company's after-tax MARR rate is 10%, would this be a good investment or not? 

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Business Economics: A company is considering the installation of a new machine
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