You Are Considering Purchasing a New Injection Molding Machine

Essay

You are considering purchasing a new injection molding machine. This machine will have an estimated service
life of 10 years with a negligible after-tax salvage value. Its annual net after-tax operating cash flows are
estimated to be $60,000. To expect a 15% rate of return on investment, what would be the maximum amount
that should be spent on purchasing the injection molding machine?