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The Rustic Welt Company is proposing to replace its old welt-making machinery with more modern equipment. The new equipment costs $10.0 million (the existing equipment

image text in transcribed The Rustic Welt Company is proposing to replace its old welt-making machinery with more modern equipment. The new equipment costs $10.0 million (the existing equipment has zero salvage value). The attraction of the new machinery is that it is expected to cut manufacturing costs from their current level of $9.00 a welt to $5.00. However, as the following table shows, there is some uncertainty about both the future sales and the performance of the new machinery: Conduct a sensitivity analysis of the replacement decision assuming a discount rate of 14%. Rustic does not pay taxes. Calculate the NPV. Note: Do not round intermediate calculations. Round your answers to the nearest whole dollar amount. Enter your answers in dollars not in millions. Negative amounts should be indicated by a minus sign

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