Your firm has purchased an injection molding machine at a cost of $100,000. The machine's useful life is
estimated to be 8 years. Your accounting department has estimated the capital cost for this machine at about
$25,455 per year. If your firm's MARR is 20%, how much salvage value do you think the accounting department
assumed at the end of 8 years?

Question

Quizplus · Accepted Answer

The Answer of Your firm has purchased an injection molding machine at a cost of $100,000. The machine's useful life is
estimated to be 8 years. Your accounting department has estimated the capital cost for this machine at about
$25,455 per year. If your firm's MARR is 20%, how much salvage value do you think the accounting department
assumed at the end of 8 years?

Your Firm Has Purchased an Injection Molding Machine at a Cost