The Munsell Color Company is considering the purchase of a new batch polymer-bonding machine for producing its number one line of crayons. Although the machine being considered will not produce any increase in sales revenues, it will result in the before-tax reduction of labor costs by $200,000 per year. The machine has a purchase price of $250,000, and it would cost an additional $10,000 to install the machine. In addition, to operate this machine, inventory must be increased by $15,000. The machine is categorized as 10-year property. After 2 years, it can be sold for $150,000. The tax rate is 34% and the cost of capital is 15%. What is the initial cash flow for the project?
MACRS Depreciation Rates
| Year | 10-Year | 15-Year |
| 1 | 10.00% | 5.00% |
| 2 | 18.00% | 9.50% |
| 3 | 14.40% | 8.55% |
◦ -$250,000
◦ -$260,000
◦ -$265,000
◦ -$275,000
◦ -$285,000
Gray squirrel with brownish color - taken in Cincinnati, OH
Additive Color Mixing
Remove cold source, and check the knee for changes. Notice skin color and changes in swelling around ...
ECG machine
Eye Color Variation
Hazel Eye Color