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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

10 points>ABC Inc. has 5 years of remaining life. If kept, the machine will have depreciation expenses of $700 each year. If the current book value is $3,500, and it can be sold for $4,500 at this time. If the old machine is not replaced, it can be sold for $800 at the end of its useful life. ABC is considering purchasing a new machine, which costs $13,200 and has an estimated useful life of 5 years with an estimated market value of $2,500. This machine will be depreciated straight-line to $1,200 book value over the life of the project. The new machine would raise sales by $3,000 per year; the new machine would also increase operating expenses by $500 per year. To support the greater sales, the new machine would require $2,100 additional NWC. ABC's tax rate is 25% and its WACC is 9%. What is the NPV of the replacement project?$1,682.34$1,450.11$1,382.76$1,613.33

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