Larson Manufacturing is considering purchasing a new injection-molding machine for $360 comma 000360,000 to expand its production capacity. It will cost an additional $20 comma 00020,000 to do the site preparation. With the new injection-molding machine installed, Larson Manufacturing expects to increase its revenue by $86 comma 00086,000 per year. The machine will be used for fivefive years, with an expected salvage value of $73 comma 00073,000. At an interest rate of 1414 %, would the purchase of the injection-molding machine be justified?
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