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straight-line method by $10,000 per year. If the machine is not replaced, it can be sold for $15,000 at the end of its useful life.

image text in transcribed straight-line method by $10,000 per year. If the machine is not replaced, it can be sold for $15,000 at the end of its useful life. he machine is estimated to be worthless. The new machine is eligible for 100% bonus depreciation at the time of purchase. The old machine can be sold today for $55,000. The firm's tax rate is 25%. The appropriate WACC is 9%. $ b. What are the incremental cash flows that will occur at the end of Years 1 through 5? Round your answers to the nearest dollar. Year 1 $ $ Year 2 $ Year 3 $ Year 4 $ Year 5 c. What is the NPV of this project? Do not round intermediate calculations. Round your answer to the nearest cent. $ Should Darlington replace the old machine

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