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One year ago, your company purchased a machine used in manufacturing for $105 000. You have learned that a new machine is available that offers

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One year ago, your company purchased a machine used in manufacturing for $105 000. You have learned that a new machine is available that offers many advantages; you can purchase it for $140 000 today. It will be depreciated on a straight-line basis over ten 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 $40 000 per year for the next ten years. The current machine is expected to produce a gross margin of $25 000 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 its year-old machine? The NPV of replacing the year-old machine is s(Round to the nearest dililar) Should your company replace its year-old machine (Select the best choice below) O B. Yes, there is a profit from replacing the machine

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