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Please show in excel. (30 Points) A company is considering replacing an existing machine with a more modern one. Here are some of the details:

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Please show in excel.

(30 Points) A company is considering replacing an existing machine with a more modern one. Here are some of the details: Old Machine New Machine The tax rate is 40%. Assume straight Purchase Price $600,000 (5years ago) $950,000 line depreciation and a RRR of 10%. Market Value $200,000 $950,000 Assume the salvage value of the Book Value $300,000 $950,000 investment is equal to zero when Salvage Value $0 (5 years from now) $100,000 (10 years from now) calculating the depreciation charge. O Find the NPV associated with the Age 5 0 project. Why would one depreciate the asset to zero rather than use the Original Life 10 10 Yearly capacity 55,000 units 80,000 units salvage value? Sales Price $7/unit $7/units Yearly expenses $80,000 $60,000 Training expenses Inventory not applicable $50,000 $30,000 $40,000

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