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24) Edwards Manufacturing Comspany is sonsidening replacing one achine with anothes. The old machine was purchased 3 years ago for an installed cost of 10
24) Edwards Manufacturing Comspany is sonsidening replacing one achine with anothes. The old machine was purchased 3 years ago for an installed cost of 10 000 SD. De 8h is depreciating the nachine undier MACRS using a Syear recovery period (Depreciation percentages are year l-am, yarz myatu foul The seu nachine costr24900 tsDand requires 2 000 USD in insallation costs. The arm is loi 40% RS tase. (a) Calculaie the initial investment for se te htachine for 7 000 t So (b) New machine will operasc & years rila afe tas inceental as fow sf o00 ESD r ye A: the red of the sith year book value and markes value of the ichins are etised se bs Eatafaw huring cost of capital s I2s Should the replacement be made
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