1. Business
  2. Economics
  3. larson manufacturing is considering purchasing a new injectionmolding machine for...

Question: larson manufacturing is considering purchasing a new injectionmolding machine for...

Question details

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?

Solution by an expert tutor
Blurred Solution
This question has been solved
Subscribe to see this solution