3. Problem 12.10 (Replacement Analysis) elook The Dauten Toy Corporation uses an Injection molding machine that was purchased prior to the new tax legislation. This machine is being deprecated on a straight-line basis, and it has 6 years of remaining life. Its current book value is 32.100, and it can be sold for $2,600 at this time. Thus, the annual depreciation expense is $2.100/0 - $350 per year. If the old machine is not replaced, it can be sold for $500 at the end of its see Daten is offered a replacement machine which has a cost of $10,000, estimated useful life of 6 years, and an estimated salvape value of $800. The replacement machine eligible for 100% bonus deprecation at the time of purchase. The replacement machine would permitan output expansion, so sales would by 31,000 per years as the new machine's much greater efficiency would case perting expenses to dedine by 11.000 per year. The new machine would require that inventories be increased by $2,500, but accounts payable would simultaneously increase by 1800. Oute's main federal state tax rate is 255, and its WACC 115 What is the NPV of the incrementat canh tow streame value to be indicated by a mon Round you to the eart Should the contre replace the 8. Problem 12.10 (Replacement Analysis) tock The Dauten Tay Corporation uses an injection molding machine that was purchased prior to the new tax legislation. This machine is being depreciated on a straight line basis, and it has 6 years of remaining life. Its current book value is 52.100, and it can be sold for $2,600 at this time. Thus, the annual depreciation expertise is $2.100/6 = $350 per year. If the old machine is not replaced, it can be sold for $500 at the end of its useful life Dauten is offered a replacement machine which has a cost of $10,000, an estimated useful life of 6 years, and an estimated salvage value of $800. The replacement machines ligible for 100% bonus depreciation at the time of purchase. The replacement machine vould permitan output expansion so sales would rise by $1,000 per year even so the new machine's much greater efficiency would cause operating expenses to decline by $1.000 per year. The new machine would require that inventores be increased by $2.500, but accounts payable would simultaneously increase by $800. Dauten's marginal federal-plus-state tax rate is 25%, and its WACCI What is the NPV of the Incremental cash flow stream Negative valueIranshould be indicated by a minus sign. Round your answer to the nearest cent. Should the con replace the old machine? 3. Problem 12.10 (Replacement Analysis) elook The Dauten Toy Corporation uses an Injection molding machine that was purchased prior to the new tax legislation. This machine is being deprecated on a straight-line basis, and it has 6 years of remaining life. Its current book value is 32.100, and it can be sold for $2,600 at this time. Thus, the annual depreciation expense is $2.100/0 - $350 per year. If the old machine is not replaced, it can be sold for $500 at the end of its see Daten is offered a replacement machine which has a cost of $10,000, estimated useful life of 6 years, and an estimated salvape value of $800. The replacement machine eligible for 100% bonus deprecation at the time of purchase. The replacement machine would permitan output expansion, so sales would by 31,000 per years as the new machine's much greater efficiency would case perting expenses to dedine by 11.000 per year. The new machine would require that inventories be increased by $2,500, but accounts payable would simultaneously increase by 1800. Oute's main federal state tax rate is 255, and its WACC 115 What is the NPV of the incrementat canh tow streame value to be indicated by a mon Round you to the eart Should the contre replace the 8. Problem 12.10 (Replacement Analysis) tock The Dauten Tay Corporation uses an injection molding machine that was purchased prior to the new tax legislation. This machine is being depreciated on a straight line basis, and it has 6 years of remaining life. Its current book value is 52.100, and it can be sold for $2,600 at this time. Thus, the annual depreciation expertise is $2.100/6 = $350 per year. If the old machine is not replaced, it can be sold for $500 at the end of its useful life Dauten is offered a replacement machine which has a cost of $10,000, an estimated useful life of 6 years, and an estimated salvage value of $800. The replacement machines ligible for 100% bonus depreciation at the time of purchase. The replacement machine vould permitan output expansion so sales would rise by $1,000 per year even so the new machine's much greater efficiency would cause operating expenses to decline by $1.000 per year. The new machine would require that inventores be increased by $2.500, but accounts payable would simultaneously increase by $800. Dauten's marginal federal-plus-state tax rate is 25%, and its WACCI What is the NPV of the Incremental cash flow stream Negative valueIranshould be indicated by a minus sign. Round your answer to the nearest cent. Should the con replace the old machine