1. Determine the decision that needs to be made by the owner and the criteria he should use to make the decision .
2. Perform a Net Present Value calculation for the purchase of the new machine. Use 15% as the cost of capital. Use $15, 050 as the Present Value of the Tax Shield from CCA.
3. Discuss the pros and cons of purchasing the new machinery.
4. As owner, what would your decision be? Provide necessary support and justification.