A company is consider buying a new machine for
$9,060
. The manufacturer tells you that the machine, with regular maintenance of around
$180
per year, should be able to continue working for 14 years. Based on your calculations the salvage value at that time should be about
$250
. According to the current asset class table the allowable depreciation rate for this machine would be
26%
. If the company's tax rate is
45%
and their after-tax MARR is
9%
, what is the after tax annual worth of this investment? Use four decimal place accuracy for the CTF and CSF.