Larson Manufacturing is considering purchasing a new injection-molding machine for $280,000 to expand its production capacity. It will cost an additional $15,000 to do the site preparation. With the new injection-molding machine installed, Larson Manufacturing expects to increase its revenue by $94,000 per year. The machine will be used for six years, with an expected salvage value of $77,000. At an interest rate of 8%, would the purchase of the injection-molding machine be justified? Click the icon to view the interest factors for discrete compounding when / -8% per year. *** The present worth of the project is $ (Round to the nearest dollar)

Larson Manufacturing is considering purchasing a new injection-molding machine for $280,000 to expand its production capacity. It will cost an additional $15,000 to do the site preparation. With the new injection-molding machine installed, Larson Manufacturing expects to increase its revenue by $94,000 per year. The machine will be used for six years, with an expected salvage value of $77,000. At an interest rate of 8%, would the purchase of the injection-molding machine be justified? Click the icon to view the interest factors for discrete compounding when / -8% per year. *** The present worth of the project is $ (Round to the nearest dollar)

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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