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30 510 complete HW Score: 0%, 0 of 30 pts 11-15 (similar to) Question Help O Terminal cash flow-Replacement decision Russell Industries is considering re

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30 510 complete HW Score: 0%, 0 of 30 pts 11-15 (similar to) Question Help O Terminal cash flow-Replacement decision Russell Industries is considering re g ally do we machine that has remaining elitle of 10 years with a newer, more sophisticated machine. The new machine will $196,000 and will require 531,000 in installation costs. It will be depreciated under MACRS using a 5-year covery poriade the b o x the opiate depreciation percentages. A 120.000 increase in networking capital will regured to support the new machine. The managers to evaluate the potential replacement or your period. They estimate that the old machine could be sold at the end of 4 years to net 515.000 before taxes, the cwmachine at the end of 4 years will be worth $74.000 before les Calculate terminalash Tow at the end of year that is relevant to the proposed purchase of the new machine. The missato 40% fara the cash flow forecementos shown b o und to the Data Table Proceeds from sale of new machine Tax on sale of new machine Total after pr sset Click on the con here in the con of the datab a se Tax on sale of old machine Rounded Depreciation Percentages by Recovery Year Using MACRS First Four Property Classes Percentage by recovery year 3 yes Tyears Total arter tax proceedi-old asset Change in not working at Recovery year 10 years Totals "These percentages have been founded to the nearest whole percent to s plity calculations while retaining ream To calculate the actual depreciation for purposes, bewure to apply the actual urrounded percentages or re p ly duble-decinin ce 2001 pecition in the year my number in the edit fields and then click Check

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