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1 0 points > ABC Inc. has 5 years of remaining life. If kept, the machine will have depreciation expenses of $ 7 0 0
pointsABC Inc. has years of remaining life. If kept, the machine will have depreciation expenses of $ each year. If the current book value is $ and it can be sold for $ at this time. If the old machine is not replaced, it can be sold for $ at the end of its useful life. ABC is considering purchasing a new machine, which costs $ and has an estimated useful life of years with an estimated market value of $ This machine will be depreciated straightline to $ book value over the life of the project. The new machine would raise sales by $ per year; the new machine would also increase operating expenses by $ per year. To support the greater sales, the new machine would require $ additional NWC ABC's tax rate is and its WACC is What is the NPV of the replacement project?$$$$
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