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Business, 06.12.2019 01:31 nicoleh2015

Masters machine shop is considering a four-year project to improve its production efficiency. buying a new machine press for $425,000 is estimated to result in $169,000 in annual pretax cost savings. the press falls in the macrs five-year class, and it will have a salvage value at the end of the project of $69,000. the press also requires an initial investment in spare parts inventory of $28,000, along with an additional $3,500 in inventory for each succeeding year of the project. the shop’s tax rate is 23 percent and its discount rate is 10 percent.

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