Western Textiles is trying to determine whether to purchase a new weaving machine that costs $186,000. It would cost another $34,000 to Install the machine. Western plans to use the machine for four years and then sell it for $60,000. The machine will be depreciated according to the MACRS 5-year class of assets. a. What will be the depreciation associated with the machine each year Western uses it? Round your answers to the nearest dollar. b. If its marginal tax rate is 40 percent, what after-tax net cash flow will Western receive when the machine is sold in four years? Round your answer to the nearest dollar.
