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Green Moose Industries is a company that produces iGadocts, among several other products, Suppose that Green Moose Industries conciders replacing its old machine used to

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Green Moose Industries is a company that produces iGadocts, among several other products, Suppose that Green Moose Industries conciders replacing its old machine used to make iGadgets with a more efficient one, which would cost $1,700 and require $380 annually in operating costs except depreciation. After-tax salvage value of the old machine is $700, while its annual operating costs except depreciation are $1,000. Acsume that, regardless of the age of the equipment, Green Moose Industries's sales revenues are fixed at $4,500 and depreciation on the old machine is $700. Assume also that the tax rate is 40% and the project's risk adjusted cost of capital, r, is the same as weighted avenage cost of capital (wacc) and equals 104, Based on the data, net cash flows (NCFs) before replacement are , and they are constant over four years. Athough Green Moose Industries's NCFs before replacement are the same over the 4-year period, its NCFs after reclacement vary annually The following table shows depredation rates over four years. Complete the following table and calculate incremental cash flows in each year, Mint: Round your answers to the nearest dollar and remember to enter a minus sign if the calculated value is negative. Next evaluate the incremental cash flows by calculating the net oresent value (NPV), the internal rate of return (IRR), and the modified IRR (MIRR). Assume again that the cont of financing the new project is the same as the WAcC and equals 10%. Hint: Use a : use a financial calculator for this task. Next evaluate the incremental cash flows by calculating the net present value (NPV), the internal rate of return (IRR), and the modified IRR (MIRR). Assume again that the cost of finanding the new project is the same as the WACC and equals 10%. Hint: Use a spreadsheet program's functions or use a financial calculator for this task. Based on the evaluation, replacing the old equipment appears to be a decision because

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