Question: larson manufacturing is considering purchasing a new injectionmolding machine for...
Larson Manufacturing is considering purchasing a new injection-molding machine for $210,000 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 $100,000 per year. The machine will be used for four years, with an expected salvage value of $78,000. At an interest rate of 8%, would the purchase of the injection-molding machine be justified?
The present worth of the project is $_______. (Round to the nearest dollar.)
Would the purchase of the injection-molding machine be justified?
yes or no?