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One year ago your company purchased a machine used in manufacturing for $120,000. You have learned that a new machine is available that offers many

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One year ago your company purchased a machine used in manufacturing for $120,000. You have learned that a new machine is available that offers many advantages and that you can purchase it for 5170,000 today The CCA rate applicable to both machines is 30%,nother machine will have any long form salvage value You expect that the new machine will produce comings before interest rates, depreciation, and amortization (EBITDA) of $45,000 per you for the next 10 years. The current machine is expected to produce EBITDA of $23,000 per year All other expenses of the two machines are identical the market value today of the current machine is $50,000 your company's tax rates 42% and the opportunity cost of capital for this type of equipment is 12%. Should your company toplace its year old machine? What is the NPV at replacement? The NPV of teplacement is (Round to the nearest doilar)

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