FIN 222 ud is considering the purchase of a tw photocopt to replace the cutting one. The following information is avatte The total cost of the NEW is 516,000. The NEW is to be deprecated using the straight-line method with an effective life of 10 years The OLD was purchased 5 years ago for 57500. When it was purchased these had an mpected use of 15 years and an estimated market value ofrer at the end of the machine currently has a market value of $1000, . As a result of the NEW sales in each of the next ten years are expected to increase by S2000, and product costs excluding depreciation will represent of sales . As a result of the NEW, current assets will increase by 55.000 and current sub it increase by 32000. Then working capital will be recovered in the terminal The terminal value of the NEW at the end of Year 10 will be 53000 The company subject to a 30% tax rate and the cost of capital is 15% Compute the NPV Should FIN222 accept the project and why? Question 15 marki FIN 222 Ltd is considering the purchase of a new photocopier to replace the existing one. The following information is available The total cost of the New is $16000. The NEW is to be depreciated using the straight-line method with an effective site of 10 years The OLD was purchased 5 years ago for $7500. When it was purchased, the asset had an expected useful life of 15 years and an estimated market value of zero at the end of its lite. The machine currently has a market value of $100 . As a result of the NEW sales in each of the next ten years are expected to increase by $2000 and product costs excluding depreciation will represent 50% of As a result of the NEW.current asset will increase by $5.000 md current liabilities will increase by $2000. The networking capital will be recovered in the terminal year The terminal value of the NEW at the end of Year 10 will be $1000, The company is subject to a 30% tax rate and the cost of capital Compute the NPV. Should N222 accept the project and why