A company wants to replace used machinery ($5k.5) for a new, more efficient one with more production capacity and technology ($8k.4). Data to be considered: 1- Increase in sales from $50k to $60k annually. 2- Reduction of labor costs from $10k to $7k. 3- Reduction in loss due to defective items from $5k to $3k 4- Company pays 25% taxes 5-Depreciation Method - Straight line The exercise must be analyzed and the values will be multiplied by two