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One year ago, your company purchased a machine used in manufacturing for $ 1 2 1 comma 0 0 0 . You have learned that

One year ago, your company purchased a machine used in manufacturing for $121 comma 000. You have learned that a new machine is available that offers many advantages and you can purchase it for $145 comma 000 today. It will be depreciated on a straight-line basis over 10 years and has no salvage value. You expect that the new machine will produce a gross margin(revenues minus operating expenses other than depreciation) of $55 comma 000 per year for the next 10 years. The current machine is expected to produce a gross margin of $20 comma 000 per year. The current machine is being depreciated on a straight-line basis over a useful life of 11 years, and has no salvage value, so depreciation expense for the current machine is $11 comma 000 per year. The market value today of the current machine is $50 comma 000. Your company's tax rate is 30%, and the opportunity cost of capital for this type of equipment is 12%. Should your company replace its year-old machine
what is the NPV of replacing the year old machine.

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