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please help me with this questions as soon as possible - The new equipment will have a cont of $1,200,000, and it is eligible for

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- The new equipment will have a cont of $1,200,000, and it is eligible for 100% bonus depreciotion so 2 will be faly depreciated at t=O4 - The oid machine was purchased before the new tax law, so it is being depreciated on s stralghe-line basiz. It has a bocik value of $200,000 (at year 0) and four more years of depreciation left (\$50,000 per year). - The new equipment will have a salvage value of $0 at the end of the projects life (year 5 ). The old machine has a current sakage velue (at yesr 0 ) of $300,000. - Replaong the old machine will requ re an investment in net operating working casital (NowC) of 345,000 that wifl be recovired at the end of the project's lfe (year6). - The new machine is more efficient, so the firms incremental earnings before interest and taxes (East) wit intrease by a tocal of $700,000 in each of the next six years (years 1-6). Hint: This value represents the difference between the rrvenues and operatirg costs (including depreciation expense) generated using the new equipment and that earned using the old equipment. - The project's cost of capital is 13%. - The company's annual tax rate is 25%. Complete the following table and compute the incremental cash fows associated with the replacement of the old equlpment with the new equlpme The net present value (NPV) of this replacement project is: The net present value (ReV) of this replacement sreject is: 51,059,650 $1,201,375 51,695,776 51,412,147

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