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The following table summarizes the financial implications of replacing an old machine with a new one: Machine Book Value ($) Remaining Useful Life (years) Old

The following table summarizes the financial implications of replacing an old machine with a new one:

Machine

Book Value ($)

Remaining Useful Life (years)

Old Machine

$20,000

5

New Machine

$100,000

10

The required rate of return is 10%. Should the company replace the old machine? Utilize the net present value method for your analysis.

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