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A manufacturing company is considering replacing its old machine with a new one. The old machine has a book value of $20,000 and a remaining

  1. A manufacturing company is considering replacing its old machine with a new one. The old machine has a book value of $20,000 and a remaining useful life of 5 years. The new machine costs $100,000 and has an expected useful life of 10 years. If the company's required rate of return is 10%, should it replace the old machine? Use the net present value method for your analysis.

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