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depreciated by the straight - line method by $ 9 , 0 0 0 per year. If the machine is not replaced, it can be

depreciated by the straight-line method by $9,000 per year. If the machine is not replaced, it can be sold for $10,000 at the end of its useful life.
its useful life, the machine is estimated to be worthless. The new machine is eligible for 100% bonus depreciation at the time of purchase.
The old machine can be sold today for $50,000. The firm's tax rate is 25%. The appropriate WACC is 9%.
the nearest dollar.
$
b. What are the incremental cash flows that will occur at the end of Years 1 through 5? Round your answers to the nearest dollar.
c. What is the NPV of this project? Do not round intermediate calculations. Round your answer to the nearest cent.
$
Should Darlington replace the old machine?
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