Quiz: Chapter 9 Quiz Time Remalning: 00:05:09 Submit Quiz This Question: 1 pt 12 of 13 (10 complete) This Quiz: 13 pts possible One year ago, your company purchased a machine used in manufacturing for $115,000. You have learned that a new machine is avaliable that offers many advantages and you can purchase It for $165,000 today. It will be depreclated on a straight-line basis over 10 years and has no salvage value. You expect that the new machine will produce a gross margin (revenues minus operating expenses other than depreciation) ot $55,000 per year for the next 10 years. The current machine is expected to produce a gross margin of $22,000 per year. The current machine is being depreciated on a straight-line basis over a useful life of 11 years, and has no salvage value, so depreciation expense for the current machine is S 10455 per year. The market value today of the current machine is $60,000. Your company's tax rate is 40%, and the opportunity cost of capital for this type of equipment is 12%. Should your company replace ts year old machine? The NPV of replacing the year-old machine is Round to the nearest dollar.) Should your company replace its year-old machine? (Select the best choice below.) o A. C) B. No, there is a loss from replacing the machine. Yes, there is a profit from replacing the machine. Click to select your answers) Quiz: Chapter 9 Quiz Time Remalning: 00:05:09 Submit Quiz This Question: 1 pt 12 of 13 (10 complete) This Quiz: 13 pts possible One year ago, your company purchased a machine used in manufacturing for $115,000. You have learned that a new machine is avaliable that offers many advantages and you can purchase It for $165,000 today. It will be depreclated on a straight-line basis over 10 years and has no salvage value. You expect that the new machine will produce a gross margin (revenues minus operating expenses other than depreciation) ot $55,000 per year for the next 10 years. The current machine is expected to produce a gross margin of $22,000 per year. The current machine is being depreciated on a straight-line basis over a useful life of 11 years, and has no salvage value, so depreciation expense for the current machine is S 10455 per year. The market value today of the current machine is $60,000. Your company's tax rate is 40%, and the opportunity cost of capital for this type of equipment is 12%. Should your company replace ts year old machine? The NPV of replacing the year-old machine is Round to the nearest dollar.) Should your company replace its year-old machine? (Select the best choice below.) o A. C) B. No, there is a loss from replacing the machine. Yes, there is a profit from replacing the machine. Click to select your answers)