Specialty maching inc bought a new multi-turret turning


Specialty Maching, INC bought a new multi-turret turning center for 250000. The machine generated new revenue of 80000 per year. Operating costs for the machine averaged 10000 per year. Following IRS regulations, the machine was depreciated using the MACRS method, with a recovery period of 7 years. The center was sold for 75000 after 5 years of service. The company uses an after-teax MARR rate of 12% and is in the 35% tax bracket. Determine the after-tax net present worth of this asset over the 5-year service period.

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Business Economics: Specialty maching inc bought a new multi-turret turning
Reference No:- TGS01543133

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