A company is planning to purchase a machine that will cost $24,000, have a 6-year life, and have no salvage value. The company expects to sell the machine’s output of 3,000 units evenly throughout...

A company is planning to purchase a machine that will cost $24,000, have a 6-year life, and have no salvage value.  The company expects to sell the machine’s output of 3,000 units evenly throughout each year. Total operating income generated over the life of the machine is estimated to be $12,000.  The machine will generate net cash inflows of $6,000 per year.  The average rate of return for the machine is 50%.

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