S 4:00 Question 8, Problem 9-19 (agoranmey Part 1 of 2 O Points: 0 of 1 Save Apharmaceutical company has some existing semiautomated production equipment that they are considering replacing This equipment has a present MV of $50,000 and a BV of $31,000. has five more years of straight-ane depreciation available of kept) of $0,200 per year, at which time is BV would be 50. The estimated MV of the equipment five years from now (in year zero dollars) is $10,000. The MV rate of increase on this type of equipment has been averaging 2.8% per year. The total operating and maintenance and other related expenses are averaging $26,000 (AS) per year New automated replacement equipment would be leased. Estimated operating and maintenance and related company expenses for the new equipment are $12,500 per year. The annual easing cost would be $24,000. The after-tax MARR (with an inflation component) is 5% per year ( 25% and the analysis period is five years. Based on an after-tax, AS analysis, should the replacement be made? Base your answer on the actual RR of the incremental cash flow The actual fit of the incremental cash flow is (Round to one decimal place.) C Ask my instructor Clear all Check answer