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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 straightline method by $ per year. If the machine is not replaced, it can be sold for $ at the end of its useful life.
its useful life, the machine is estimated to be worthless. The new machine is eligible for bonus depreciation at the time of purchase.
The old machine can be sold today for $ The firm's tax rate is The appropriate WACC is
the nearest dollar.
$
b What are the incremental cash flows that will occur at the end of Years through 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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