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One year ago, your company purchased a machine used in manufacturing for ( $ 115,000 ). You have learned that a new machine is available

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One year ago, your company purchased a machine used in manufacturing for \\( \\$ 115,000 \\). You have learned that a new machine is available that offers many advantages and that you can purchase it for \\( \\$ 170,000 \\) today. The CCA rate applicable to both machines is \40; neither machine will have any long-term salvage value. You expect that the new machine will produce earnings before interest, taxes, depreciation, and amortization (EBITDA) of \\( \\$ 50,000 \\) per year for the next 10 years. The current machine is expected to produce EBITDA of \\( \\$ 20,000 \\) 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 rate is \38, and the opportunity cost of capital for this type of equipment is \10. Should your company replace its year-old machine? What is the NPV of replacement? The NPV of replacement is \\( \\$ \\) (Round to the nearest dollar.)

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