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$145,000 today. it will be deprecialed on a straight-Ine basis over 10 years and has no salvage value. You expoct that the new rrachine wil

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$145,000 today. it will be deprecialed on a straight-Ine basis over 10 years and has no salvage value. You expoct that the new rrachine wil produces a grois maryin (revenues minis opereng expenses other than depreciation) of $55,000 per year for the next 10 years. The current machine is expected to produce a gross margin of $21,000 per year. The curert machien is beny current machine is $55,000. Your coenpany's tax rate is 40%, and the oppertunity cost ef capital for tris type of equipmont is 12%,5 thouid your company replace its yest-old mactine? The NPV of teplacing the year old machine is } (Round to the nearest dollar.) One year ago, your compary purchased a machine used in manufacturing for $115.000. You have learned that a new machine is avaisble that offers many advantages and you can purchase it 1 \$145,000 today. It will be depreciated on a straight-line basis over 10 years and has no salvage value. You expect that the new machine will produce a gross margin (reverues minus operating expenses other than depreciation) of $55,000 per year for the next 10 years. The current machine is expected to produce a gross margin of $21,000 per year. The current machine is being depreciated on a straight-ine basis over a useful life of 11 years, and has no salvage value. so depreciation expense for the current machine is 510 .455 per year. The mariet value foctyy of the current machine is $55,000. Your company's tax rate is 40%, and the opportunity cost of capizal for this type of equipment is 12%. Should your company repiace its year-oid machine? The NPV of repincing the ynar-old machine is : (Round to the nearnst dollar.)

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