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--------------- I do not want a detailed answer. I just want the final answer as soon as possible. Solve quickly I get you thumbs up directly Thank's Abdul-Rahim Taysir

=221099&cmid=108092 @ritaj.ps Sanad Inc. is considering replacing an existing piece of Finis equipment with a more sophisticated machine. The following Time information is given. Existing Machine Cest-$100,000 Purchased 2 years ago Depreciation using MACRS over a 5-year recover schedule Current market value = $ 105,000 Five year usable life remaining Facts Proposed Machine Cost = $150,000 Installation = $20,000 Depreciation--the MACRS 5-year recovery schedule will be used Five year usable life expected Earnings before Depreciation and Taxes Existing Machine Proposed Machine Year $160,000 Ysar 1 $170,000 2 150.00 170,000 3 140,000 3 170,000 4 4 7000 5 140.000 5 170,000 The firm has determined its optimal capital structure, which is composed of the following sources and target market value proportions: Source of Capital Target Market Address 221099&cmid=108092 mlp@ritaj.ps Compute the PI? Compute the EVA for the third year? . Determine whether the replacement decision should be accepted or not? =221099&cmid=108092 @ritaj.ps Sanad Inc. is considering replacing an existing piece of Finis equipment with a more sophisticated machine. The following Time information is given. Existing Machine Cest-$100,000 Purchased 2 years ago Depreciation using MACRS over a 5-year recover schedule Current market value = $ 105,000 Five year usable life remaining Facts Proposed Machine Cost = $150,000 Installation = $20,000 Depreciation--the MACRS 5-year recovery schedule will be used Five year usable life expected Earnings before Depreciation and Taxes Existing Machine Proposed Machine Year $160,000 Ysar 1 $170,000 2 150.00 170,000 3 140,000 3 170,000 4 4 7000 5 140.000 5 170,000 The firm has determined its optimal capital structure, which is composed of the following sources and target market value proportions: Source of Capital Target Market Address 221099&cmid=108092 mlp@ritaj.ps Compute the PI? Compute the EVA for the third year? . Determine whether the replacement decision should be accepted or not

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