Galveston shipyards is considering the replacement of an eight year old riveting machine with a new one what will increase earnings before depreciation and taxes from 27,000 54,000 per year. the new machine will cost 82000 and will have an estimated life of 8 years and no salvage value. the new machine will be depreciated over its 5 years MACRS revovery period. the firm's marginal tax rate is 40% and the required rate of return is 12%. the old machines is fully depreciated and there is not salvage value. should the old riveting machine be replaced by the new one? PLEASE SHOW ME ALL THE WORK TO SOLVE THIS!