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Questions Problem 12. 10 (Replacement Analysis) und Study Tools 1 Check My Work otions uccess Tips . + ccess Tips back 2 . The Bauten

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Questions Problem 12. 10 (Replacement Analysis) und Study Tools 1 Check My Work otions uccess Tips . + ccess Tips back 2 . The Bauten Toy Corporation currently uses an injection molding machine that was purchtbrotown Thement on a straight line bass, and it has 6 years of remaining life its current book is 2.100, and it can be of 2.500 Thus, we real depreciation expenses $2.10076 - 3350 per year the machine to replace, it can be sold for $500 and of its wwtalte Dat is offered replacement machine which is a cost of $9,000, an estimated use of 6 years, and animated salvage 1200he replacement machine is eligible for 100% bonus depreciation at the time of that. The replacement machine would permitan en would rise by to per year; even so, the new machine's much greater officiency would come operating to decline by $1,000 per year. The new machine would require that inventores be increased by $2,500, but accounts payat would simutannusly increase $500 Denarna federal state tax rate is 25 and its WACC 11 What is the NPV of the incremental cash flow stra? Nestive valon, Wary, should be indicated by a minus sign. Round your answer to the recent, 10 11. . the company replace the old machine? NE Check My Work

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