You are currently working as an independent consultant for Cong Nghiep Constructions and LPG (Liquefied Petroleum Gas) company. You have been asked by the president to evaluate the proposed acquisition of a new earth mover. The mover’s basic price is $50,000, and it would cost another $10,000 to modify it for special use. Assume that the mover falls into the MACRS 3- year class, it would be sold after 3 years for $20,000, and it would require an increase in net working capital (spare parts inventory) of $2,000.
You are currently working as an independent consultant for Cong Nghiep Constructions and LPG (Liquefied Petroleum Gas) company. You have been asked by the president to evaluate the proposed acquisition of a new earth mover. The mover’s basic price is $50,000, and it would cost another $10,000 to modify it for special use. Assume that …