Replacement Analysis Although the Chen Company's miling machine is old, it is still in relatively good worlong order and would last for another 10 years. It is ineffort compared to traders standards, though, and so the company is considering replacing it. The new milling machine, at a cost of $118,000 delivered and installed, would was last for 10 and would produce after-tax cash flows (labor savings and depreciation tax savings) of $19,400 per year. It would have sero salvage value at the end of the The project cost of capital is 10%, and its marginal tax rate is 25%. Should Chen buy the new machine? Do not round intermediate calculation and your own nearest cent. Negative value, if any, should be indicated by a minus sign NPV: 5 Chen -Select- purchase the new machine