The Ovieds Comparty is considering the purchase of a new machine to teplace an obsolete one. The madrine being used for the operabion has a book value and a market value of zero. Howevec the machine is in good woiking crder ard will last at least another 10 years. The proposed replacement machine will perform the operation so much more efficientiy that Oviedo's engineers estenake. that it will produce witer tax canh flows (labor savings) of $9,000 per year. The after tax cost of the pew machine is $35,000, and its ecanomic life is estimated to be 10 yeark. It has zero salvage value. The farm's WACC is 10%, and its marginal tax rate is 25%. Sheudd Oniedo buy the new machine?th oviedo purchase the new mactune