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

One year ago, your company purchased a machine used in manufacturing for $ 120 comma 000. You have learned that a new machine is available that offers many advantages; you can purchase it for $ 160 comma 000 today. It will be depreciated on a straight-line basis over 10 years, after which it has no salvage value. You expect that the new machine will contribute EBITDA(earnings before interest, taxes, depreciation, and amortization) of $ 50 comma 000 per year for the next 10 years. The current machine is expected to produce EBITDA of $ 20 comma 000 per year. The current machine is being depreciated on a straight-line basis over a useful life of 11 years, after which it will have no salvage value, so depreciation expense for the current machine is $ 10 comma 909.09 per year. All other expenses of the two machines are identical. 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 equip The NPV of the replacement is ... The NPV of the replacement is $28387.39.(Round to the nearest cent.)
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