The thabee botthing Company ws contemptating the teplacernent of one of its botiling machines mith a furwer and more eticient one, The old machine was purchased prior to the TCM, has a book volve of $550,000, and a remaining useful hife of 5 years. The firm does not expect to realize ary return from seraphing the cld machine in 5 rearn, bat The new machune has a purchase pnoe of 51,200,000, an estimated useful life of 5 years, and an estimated salvage value of 3135,000 , The new machine is elighle for 1007 . boetus depreciation at the time of purchase. It is espected to economizn on electic power wage, labor, and repair costs, as well as to reduce. the rumber of defective botties. the nearest dilliv. s. answits to the neartes dollat. e. In genecal, how would each of the following factors affect the investment decision, and how should each be treated? 1. The expected life of the existing machine decreases. The new mactive whllock than before due to the relative of the cash flows attributable to it. should be made. 2. The WACC is not consarit, but is increasing as Bigbee adds more projects into its capital budget for the year. Tbe NDN will dine to a cagital cost