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B. Analysis of a replacement project A. times firms will need to decide if they want to continue to use their current equipment or rolsec

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B. Analysis of a replacement project A. times firms will need to decide if they want to continue to use their current equipment or rolsec the equipment with oener equipment. The company wit neod to do replacemont analysis to determine which estion is the best financial decision for the company - The hew equipment will have a cost of $1,200,000, and it wil be depreciated on a strabht-line basis over a period of six years (years 15 ). using the old equipment. - The project's cost of capital is 134. * The compeny's annual tax.rate is 40%. Complete the following table and compute the incremental cash flows sasociated with the replacement of the eld equipment with the new equipment. 1262,33 1225,993 1929,200 B. Analysis of a replacement project A. times firms will need to decide if they want to continue to use their current equipment or rolsec the equipment with oener equipment. The company wit neod to do replacemont analysis to determine which estion is the best financial decision for the company - The hew equipment will have a cost of $1,200,000, and it wil be depreciated on a strabht-line basis over a period of six years (years 15 ). using the old equipment. - The project's cost of capital is 134. * The compeny's annual tax.rate is 40%. Complete the following table and compute the incremental cash flows sasociated with the replacement of the eld equipment with the new equipment. 1262,33 1225,993 1929,200

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