and so the company is considering replacing it. The new milling machine, at a cost of $110,000 delivered and installed, would also last for 10 years and would produce after-tax cash flows (labor savings and depreciation tax savings) of $20,000 per year. It would have zero salvage value at the end of its life. The project cost of capital is 12%, and its marginal tax rate is NPV: \$ purchase the new machine