MACRS and NPV Analysis. A machine costs $1,000 initially. Annual cash inflows are expected to be $300. The machine will be depreciated using the MACRS rule and will fall in the 3-year property class....

MACRS and NPV Analysis. A machine costs $1,000 initially. Annual cash inflows are expected to be $300. The machine will be depreciated using the MACRS rule and will fall in the 3-year property class. No salvage value is anticipated. The cost of capital is 16 percent. The estimated life of the machine is 5 years. The tax rate is 40 percent. Make a decision using NPV.