Flag A mining corporation purchased $120,000 of production machinery and depreciated is using SOYD depreciation, a 5 year depreciable life, and zero salvage value. The corporation is a profitable one...

Extracted text: Flag A mining corporation purchased $120,000 of production machinery and depreciated is using SOYD depreciation, a 5 year depreciable life, and zero salvage value. The corporation is a profitable one that has a 22.98% combined incremental tax rate. At the end of 5 years the mining company changed its method of operation and sold the production machinery for $40,000. During the 5 years the machinery was used, it reduced mine operating costs by $32,000 a year, before taxes.lf the company MARR is 12% after taxes, was the investment in the machinery a satisfactory one?