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Replacement Decision (Part 1) Random Company is consider to buy is a new machine for CAD 3.500,000. The new mashine will last edit years and

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Replacement Decision (Part 1) Random Company is consider to buy is a new machine for CAD 3.500,000. The new mashine will last edit years and residual war of CAD 95.000 at the end of its life this will replace an old machine with current market value of CAD The old machine could connue to be used to eight more years and have a salvage value of CAD 75,000 at the time The company currently produces 000 000 units a year using the old machine at a contribution margin.pricem CAD 3.00 Veth the new machine production will increase by 50.000 units per year and wariable production costs wat en The ne race wille CAD 7000 in additional Inventor over the next eight years the marines Sujeito a ce rate of 204. The mainalzax rate 525.01 and the RRRAS 80 compounded tesen value of the relations of this preciosest to CADER CACH CAD Replacement Decision (Part 1) Random Company is considering buying a new machine for CAD 3.500.000. The new machines Test value of CAD 15.000 at the end of its life. This will replace an old machine with a current The aid nuchine could continue to be used for light more years and have a salvage value of CADETS The company currently produces 1.000.000 units a year using the old machine at a contribution margin- O CAD 1.00 with the new machine production will increase by 50,000 units per year and variable productions per unit the new machine will require CAD 70,000 in additional inventory over the next year The machines are subject to a CCA rate of 204. The marginal tax rate is 25.0and the RRR IS B.0, compounded the me present walue of the net initial cash flows of this project is closest to b.-241212 o Replacement Decision (Part 1) Random Company is consider to buy is a new machine for CAD 3.500,000. The new mashine will last edit years and residual war of CAD 95.000 at the end of its life this will replace an old machine with current market value of CAD The old machine could connue to be used to eight more years and have a salvage value of CAD 75,000 at the time The company currently produces 000 000 units a year using the old machine at a contribution margin.pricem CAD 3.00 Veth the new machine production will increase by 50.000 units per year and wariable production costs wat en The ne race wille CAD 7000 in additional Inventor over the next eight years the marines Sujeito a ce rate of 204. The mainalzax rate 525.01 and the RRRAS 80 compounded tesen value of the relations of this preciosest to CADER CACH CAD Replacement Decision (Part 1) Random Company is considering buying a new machine for CAD 3.500.000. The new machines Test value of CAD 15.000 at the end of its life. This will replace an old machine with a current The aid nuchine could continue to be used for light more years and have a salvage value of CADETS The company currently produces 1.000.000 units a year using the old machine at a contribution margin- O CAD 1.00 with the new machine production will increase by 50,000 units per year and variable productions per unit the new machine will require CAD 70,000 in additional inventory over the next year The machines are subject to a CCA rate of 204. The marginal tax rate is 25.0and the RRR IS B.0, compounded the me present walue of the net initial cash flows of this project is closest to b.-241212 o

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