Relevant shows terminal value Crowdy and Cleaners is considering replacing ating piece of machinery with a mors sophisticated machine. The old machine was putea goat of 547 and the mount was being der MACRS in your rowwy The machine has yn of stroming. The new machine that being considered as 375,000.00 incl. There machine would be deed under MACRS Servery period. The firm concurrent sell the old machine for 354 300 without incurring revalor depos. The formed to be of 40% Thermind loding decision and with the new and the old machines for the year in the same MACRS in pentage: The new machine will have no terminal value at the end of 5 years. Calculate the the machine by the new Determine the home with the medicamente este consider the Greciation in year) Opionamento find bed with the replacement decision Two OS 10,400 De the themed romert. Nie by ste vedere Contoh + 13.00 Derecho Netto TO 3.000 1 Opening how 102 Round to the Question Help nsidering replacing an existing place of machinery with a more sophisticated machine. The old machine was purchased 3 years ago at a cost of $47,000, and this he machine has 5 years of usable life remaining. The new machine that is being considered costs $75,000 and requires $3,800 in installation costs. The new a firm can currently sell the old machine for $54,900 without incurring any removal or cleanup costs. The firm is subject to a tax rate of 40%. The revenues and old machines for the next 5 years are percentages.) Note: The new machine will have no terminal value at the end of 5 years, by the new one. ad replacement. (Note: Be sure to consider the depreciation in year 6.) led with the proposed replacement decision. Data Table ad replacement (Note: Be su (Click on the icon here in order to copy the contents of the data table below into a spreadsheet) an.) Year 1 2 3 4 5 Revenue $749,100 749,100 749,100 749,100 749,100 New machine Expenses (excluding depreciation and Interest) $719,100 719,100 719,100 719,100 719,100 Revenue $673,100 675,100 679,100 677.100 673, 100 Old machine Expenses (excluding depreciation and Interest) $659,700 659,700 659.700 659,700 659,700 Print Done answers. MacBook Air was purchased X and requires $ firm is subject to i Data Table entral Laundir sing a 5-yen sing a 5-year associated applicable h replaceme Hows associe Found in part 16,508 ows associ (Click on the icon here in order to copy the contents of the data table below into a spreadsheet.) Rounded Depreciation Percentages by Recovery Your Using MACRS for First Four Property Classes Percentage by recovery year Recovery year 3 3 years 5 years 7 years 10 years 1 33% 20% 14% 10% 2 45% 32% 25% 18% 3 15% 19% 18% 14% 4 7% 12% 12% 12% 5 12% 9% 9% 6 5% 9% 8% 7 9% 7% 8 4% 6% 9 10 6% 11 4% Totals 100% 100% 100% 100% "These percentages have been rounded to the nearest whole percent to simplify calculations while retaining realism. To calculate the actual depreciation for tax purposes, be sure to apply the actual unrounded percentages or directly apply double-declining balance (200%) depreciation using the half-year convention elow. (Roun 6% $ $ $ $ s Print Done hred arrow