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QUESTION 4 The next 4 problems we based on the following A company is considero replacing an old machine with a new one. The cost

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QUESTION 4 The next 4 problems we based on the following A company is considero replacing an old machine with a new one. The cost of the new machines $600 000 The new much as in the MACRS 3- 133 459 15 79 and it would be used for and then sold, because the firm plans to move to a new facility that the stated whether years is $25,000. The old machine was purchased 3 years ago for $600,000, and was bo dopreciated using strah me to zero wage value over yours of de If the company chooses to replace the old machin, it can be sold for $150,000 today. The wchine wire an increase in the entry of $100.000 at The machine will reduce the annual operating costs by 520,000. The firm is in the 40% tax bracket and its cost of capitalis 10% What is the investment at 0? 520,000 270.000 570,000 390,000 480.000 QUESTION 5 Based on the information provided problem #4 What is cash flow 1 (the cash flow to be used for NPV calculations)? O 62,000 O 38,000 55,000 0 47,000 O 24,000 Submit to me and suhmit. Click Save All Answers to save all a QUESTION 6 Based on the information provided problem #4 What is the non operating cash flow or terminal value for year 3? O 170,000 O 129,000 O 250,000 O 184,000 240,000 QUESTION 7 Based on the information provided problem #4 What is the NPV of the project? O-307,684 O205,793 O -184,394 O-315,583 O -148,694

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