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St, Johns River 5 hipyards' welding machine is 15 years old, fully deprecisted, and has no salvage value. However, even though it is old, it

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St, Johns River 5 hipyards' welding machine is 15 years old, fully deprecisted, and has no salvage value. However, even though it is old, it is stil functienal as originaly designed and can be used for quite a while longer. A new welder will cost $184,500 and have an estimated life of 8 vears with no salvage value. The new welder will be much more efficient, however, and this enhanced efficiency wil increase earnings before depreciation from 528,000 to $33,000 per year. The new machine wal be depreciated over its 5% year MACRS recovery period, so the applicable depreciation rates are 20.00%,32.00%, 19.20%, 11.52%, 11.52%. and 5.76%. The applicable corperate tax rate is 25%, and the project cost of capital is 15%. What is the NDV if the firm replaces the old welder with the new one? Do not round intermediate calculations. Pound your answer to the nearest doliar. Negative value, if any, should be indicated by a minus sign. 5

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