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The Davten Toy Corponation currently uses an imyection molding machine that was purchused proe to the new tax legislation, This machine is being depreciated on

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The Davten Toy Corponation currently uses an imyection molding machine that was purchused proe to the new tax legislation, This machine is being depreciated on a straighe-ine basis, and ic has 6 vears of remaining ilfe. tts current bookvalue is $2,100, and it can be sold for $2,400 at this time. This, the annual depreciation expense is $2,100/6 = $350 per year. 2f the old machne is not replaced, it can be sold for $500 at the end of its usetul life. Dauten is olfered a replacement machine which has a cout of $9,000, an estimated uselul life of 6 rears, and an estumated salvage value of $800, The replacement machine is eligibie for 100% berius depreciaton it the time of purchase. The replacement inachine would permit an output expansion, so sales would nise by $600 per year; even so, the new machine's much greater efficiency would corre operitahg expenses to decline by $1,000 per year. The new muchine would require that whentories be increased by $2,000, but accounts payable would simutaneously increase by 4800. Dauten's marghal federal-plus state tax rate is 25%, and its WaCC is 11%. What is the FeV of the ncremental cash Bow stream? Negative value, if any, thould be indicaed by a minus sga. Round your answer to the nearest cent: 5 Shichild the coincany replice the old machine

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