The Gilbert Instrument Corporation is considering replacing the wood ously increase by $700. Gilbert's marginal federal-plus-state tax rate is on 13-9 Replacement Analysis steamerit Currently uses to shape guitar sides. The steamer has 6 years of remaining life. If kept, the steamer will have depreciation expenses of S65 for 5 years and $325 for the sixth year. Its current book value is $3.575 and it can be sold on an Internet auction site for $4,150 at this time. I the old steamer is not replaced, it can be sold for $800 at the end of its useful life. Gilbert is considering purchasing the Side Steamer 3000, a higher-end steamer, which costs $12,000 and has an estimated useful life of 6 years with an estimated salvage value of $1,500. This steamer falls into the MACRS 5-year class, so the applicable depreciation rates are 20.00%, 32.00% 19.20%, 11.52%, 11,52%, and 5.76%. The new steamer is faster and allows for an output expansion, so sales would rise by $2,000 per year, the new machine's much greater efficiency would reduce operating expenses dy $1,900 per year. To support the greater sales, the new machine would require that inventories increase by $2,900, but accounts payable would simultane and its WACC is 15%. Should it replace the old steamer