Padre Pio owns a small business and has taxableincome of

Chapter , Problem 12-74

(choose chapter or problem)

Padre Pio owns a small business and has taxableincome of $150,000. He is considering four mutu- ally exclusive alternative models of machinery.Which machine should be selected on an after- taxbasis? The after-tax MARR is 15%. Assume thateachmachineis MACRS 5-yearproperty andcan besold for a market value that is 25% of the purchasecost, and the project life is 10 years.Model I II III IVFirst cost $9000 $8000 $7500 $6200Annual costs 25 200 300 600

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