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Angelo is considering the purchase of a new equipment to replace an old one . Both items have a 25 2 CCA Rate , The

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Angelo is considering the purchase of a new equipment to replace an old one . Both items have a 25 2 CCA Rate , The new equipment costs $ 14, 300 and have a usefull life of y years, at which time It'll have a salvage of D. The old equipment can be sold now for of 630 and calna could be scrapped for $ 380 in 4 years, The operating revenues will increase anually by $9,300 with the new equipment. The tax rate is 22% and the required rate of ." return is 152 " What's the present value of CLA tax shield for the new equipmen ( 2 ) what's the present value of incremental operating cashflow for the new equipment ? 3 what's the NPV of the NPV of The replacement decision ? Should Angelo replace the old equipment with the news one

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