Replacement Analysis

The Everly Equipment Company's flange-lipping machine was purchased 5 years ago for $65,000. It had an expected life of 10 years when it was bought, and its remaining depreciation is $6,500 per year for each year of its remaining life. As older flange-lippers are robust and useful machines, this one can be sold for $20,000 at the end of its useful life.

a=

b=

c=

select = Yes OR No

useful machines, this one can be sold for $20,000 at the end of its useful life. fully depreciated.). The old machine can be sold today for $45,000. The firm's tax rate is 25%, and the appropriate cost of capital is 15%. should be indicated by a minus sign. Round your answers to the nearest dollar. Cash outflows, if any, should be indicated by a minus sign. CF:CF2CF3CF4CF55555 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 flange-lipper