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Orbi Co., who has a required rate of return of 10%, just replaced an old machine. The cost accountant has the following information: cost -

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Orbi Co., who has a required rate of return of 10%, just replaced an old machine. The cost accountant has the following information: cost - new machine $600,000 cost-old machine $275,000 annual cash flows - new machine $125,000 annual cash flows-old machine $100,000 remaining life - new 6 years machine remaining life-old machine O years salvage value - new $75,000 machine salvage value - old machine $25,000 Selected information from the PV tables: PV of $1 n=6,i=10:0.564 PV of an Annuity n-6, 1-10:4.355 What is the net present value of replacing the old machine? $(13,325) $130,625) $11,675 $155.625)

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