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Replacement Analysis life. As older flange - lippers are robust and useful machines, this one can be sold for $ 2 0 , 0 0
Replacement Analysis
life. As older flangelippers are robust and useful machines, this one can be sold for $ at the end of its useful life.
and There will be no depreciation in its th year since it will already be fully depreciated.
The old machine can be sold today for $ The firm's tax rate is and the appropriate cost of capital is
the nearest dollar. Cash outflow, if any, should be indicated by a minus sign.
$
Do not round intermediate calculations. Round your answers to the nearest dollar. Cash outflows, if any, should be indicated by a minus sign.
c What is the NPV of this project? Do not round intermediate calculations. Round your answer to the nearest dollar. Negative value, if any, should be indicated by a minus sign.
$
Should Everly replace the flangelipper?
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