Example 6.4 (pp. 261)
A company is considering buying a machine that will cost $98,000. The machine has a useful life of 7 years and a salvage value of $7,000. The machine will result in before-tax cost reduction of $25,000 annually.
Should the purchase be made (MARR = 15%)?
Consider a tax of 35%, should the investment still be made?
Straight Line (SL)
Declining Balance (DB)
Modified Accelerated Cost Recovery System (MACRS)