{ "key_pair_value_system": true, "answer_rating_count": "", "question_feedback_html": { "html_star": "", "html_star_feedback": "" }, "answer_average_rating_value": "", "answer_date_js": "2024-06-06T14:02:34-04:00", "answer_date": "2024-06-06 14:02:34", "is_docs_available": "", "is_excel_available": "", "is_pdf_available": "", "count_file_available": 0, "main_page": "student_question_view", "question_id": "2369334", "url": "\/study-help\/questions\/although-the-chen-companys-milling-machine-is-old-it-is-2369334", "question_creation_date_js": "2024-06-06T14:02:34-04:00", "question_creation_date": "Jun 06, 2024 02:02 PM", "meta_title": "[Solved] Although the Chen Company's milling machi | SolutionInn", "meta_description": "Answer of - Although the Chen Company's milling machine is old, it is still in relatively good working order and would last for an | SolutionInn", "meta_keywords": "chen,company,s,milling,machine,old,relatively,good,working,order,5,years", "question_title_h1": "Although the Chen Company's milling machine is old, it is still in relatively good working order and would last for another 5 years. It is", "question_title": "Although the Chen Company's milling machine is old, it is still in", "question_title_for_js_snippet": "Although the Chen Company's milling machine is old, it is still in relatively good working order and would last for another 5 years It is inefficient compared to modern standards, though, and so the company is considering replacing it The new milling machine, at a cost of $50,000 delivered and installed, would also last for 5 years and would produce after tax cash flows (labor savings and depreciation tax savings) of $14,000 per year It would have zero salvage value at the end of its life The firm's WACC is 11 , and its marginal tax rate is 35 What is the NPV of the new machine ", "question_description": "

Although the Chen Company's milling machine is old, it is still in relatively good working order and would last for another 5 years. It is inefficient compared to modern standards, though, and so the company is considering replacing it. The new milling machine, at a cost of $50,000 delivered and installed, would also last for 5 years and would produce after-tax cash flows (labor savings and depreciation tax savings) of $14,000 per year. It would have zero salvage value at the end of its life. The firm's WACC is 11%, and its marginal tax rate is 35%. What is the NPV of the new machine?<\/span><\/p>", "transcribed_text": "", "related_book": { "title": "Essentials Of Forensic Accounting", "isbn": "1948306441, 978-1948306447", "edition": "2nd Edition", "authors": "Michael A Crain, William S Hopwood", "cover_image": "https:\/\/dsd5zvtm8ll6.cloudfront.net\/si.question.images\/book_images\/2021\/11\/6180cb73a5085_6436180cb7324789.jpg", "uri": "\/textbooks\/essentials-of-forensic-accounting-2nd-edition-9-78e-12", "see_more_uri": "" }, "free_related_book": { "isbn": "1510414061", "uri": "\/textbooks\/caribbean-primary-mathematics-book-4-6th-revised-edition-978-1510414068-349985", "name": "Caribbean Primary Mathematics Book 4", "edition": "6th Revised Edition" }, "question_posted": "2024-06-06 14:02:34", "see_more_questions_link": "\/study-help\/questions\/business-corporate-finance-2020-July-01", "step_by_step_answer": "The Answer is in the image, click to view ...", "students_also_viewed": [ { "url": "\/list-and-state-the-purpose-of-all-audit-procedures-that", "description": "List and state the purpose of all audit procedures that might reasonably be applied by the auditors to determine that all property and equipment retirements have been recorded in the accounting...", "stars": 3 }, { "url": "\/study-help\/business-statistics\/ground-motion-of-earthquakes-in-the-journal-of-earthquake-engineering-1643679", "description": "Ground motion of earthquakes. 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