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Filkins Fabric Company is considering the replacement of its old, fully depreciated knitting machine. Two new models are available: Machine 1 9 0 - 3
Filkins Fabric Company is considering the replacement of its old, fully depreciated knitting machine. Two new models are available: Machine which has a cost or $ a year expected life, and aftertax cash flows labor savings and depreciation of $ per year; and Machine which has a cost of $ a year life, and aftertax cash flows of $ per year. Knitting machine prices are not expected to rise because inflation will be offset by cheaper components microprocessors used in the machines. Assume that Filkins's cost of capital is
Calculate the two projects' extended NPVs Do not round intermediate calculations. Round your answers to the nearest dollar.
Machine :$
Machine : $
Should the firm replace its old knitting machine? If so which new machine should it use?
The firm
By how much would the value of the company increase if it accepted the better machine? Do not round intermediate calculations. Round your answer to the nearest dollar.
$
What is the equivalent annual annuity for each machine? Do not round intermediate calculations. Round your answers to the nearest dollar.
Machine : $
Machine :$ Due in mins please help
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