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The Dauten Toy Corporation currently uses an injection molding machine that was purchased prior to the new tax legislation. 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 legislation. This machine is being depredated on a straioht-line basis, and it has 6 years of remaining life. Its current book value is $2,100, and it can be sold for $2,600 at this time. Thus, the annual depreciation expense is $2,100/6=$350 per vear. If the old machine is not replaced, it can be 50ld for $500 at the end of its useful 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 saoo, The replacersent machine is eligible for 100% bonus depreciation at the time of purchase. The replacernent machine would permit an output expansion, so sales would rise by $1,000 per year; even so, the new machine's much greater efficiency would cause operating expenses to decline by s1,500 per year, The new machine would require that inventorles be increased by $2,000, but accounts payable would simultaneously increase by $800. Dauten's marginal federalplus-state tax rate is 25%, and its Wacc is 11%, What is the NDV of the incremental cash flow stream? Negative valoe, If any, ahould be indicated by a minus sign. Round your answer to the nearest cent. 8 Should the company replace the old machine

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