CSM Machine Shop is considering a four-year project to improve its production efficiency. Buying a new machine press for $490,000 is estimated to result in $189,000 in annual pretax cost savings. The press falls in the MACRS five-year class (MACRS Table), and it will have a salvage value at the end of the project of $57,500. The press also requires an initial investment in spare parts inventory of $21,500, along with an additional $3,500 in inventory for each succeeding year of the project. The shop
| CSM Machine Shop is considering a four-year project to improve its production efficiency. Buying a new machine press for $490,000 is estimated to result in $189,000 in annual pretax cost savings. The press falls in the MACRS five-year class (MACRS Table), and it will have a salvage value at the end of the project of $57,500. The press also requires an initial investment in spare parts inventory of $21,500, along with an additional $3,500 in inventory for each succeeding year of the project. The shop |
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| CSM Machine Shop is considering a four-year project to improve its production efficiency. Buying a new machine press for $490,000 is estimated to result in $189,000 in annual pretax cost savings. The press falls in the MACRS five-year class (MACRS Table), and it will have a salvage value at the end of the project of $57,500. The press also requires an initial investment in spare parts inventory of $21,500, along with an additional $3,500 in inventory for each succeeding year of the project. The shop |
