A company is considering replacing an existing machine with a more modern one. Here are some of the details:

The tax rate is $40\%.$ Assume straight

line depreciation and a RRR of $10\%.$

Assume the salvage value of the

investment is equal to zero when

calculating the depreciation charge.

Find the NPV associated with the

project. $(2)$ Why would one depreciate

the asset to zero rather than use the

salvage value?. PLEASE SOLVE WITHOUT EXCEL as work has to be shown and I need a step by step to learn.