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$170,000 loday it wil be depreciated on a straight-tine basis over 10 years and has no salkage value. You expect that the new machine wil produce a gross margin (revenues minus operasng expenses oher than depreciation) of $40,000 per year for the next 10 years. The current machine is expecled to produce a gross margin of $23,000 per year. The current machine is being depreciated on a straight. Ine basis over a usetul lifo of 11 years, and has no salvage value, so depreciation expense for the current mactine is $8,182 per year. The market value today of the current machine is $55,000 Your company/s tax rate is 40%, and the opportunity cost of capial for this type of equipment is 11%. Should your company reploce its year-old machine? The NPV of replacing the yeariold machine is 4 (Pound to the nearest dolar) Should your cempany eeplace is year-old machine? (Select the best choice below.) A. No, there is a toss from replacing the machine B. Yes, thern is a preft from replacing the machine