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The Dauten Toy Corporation currently uses an injection molding machine that was purchased prior to the new tax legisfation. This machine is being depredated on

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The Dauten Toy Corporation currently uses an injection molding machine that was purchased prior to the new tax legisfation. This machine is being depredated on a straight-line basis, and it has 6 years of remaining life. Its current book value is $2,400, and it can be sold for $2,500 at this time. Thes, the annual degreciation experise is $2,400/6=$400 per year. If the old machine is not replaced, it can be sold for $500 at the end of its uselul life. Dauten is offered a replacement machine which has a cost of 59,000 , an estimated useful life of 6 years, and an estimated salvage value of sBo0. The replaceingnt machine is eligible for 100% bonus depreciation at the time of purchase. The replacement machine would permit an output oxpansion, so sales. would rise by seon on year; even sb, the new machine's much greater efficiency would cause operating expenses to decine by $1,500 per year. The new machine would require that inventories be increased by $2,000, but accounts payable would simultaneously increase by 7800 . Dauten's marginal federal-plus-state tax rate is 25%, and ita Wicc Is 11%. What is the Noy of the incremental cash flow stream? Negative value, If any, should be indicated by a minus sign. Round your answer to the nearert cent. Should the company replace the old machine

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