the the following information to answer the next seven questions: Axelrod Corp. is considering replacing an old machine with a new one that costs $1.460.000 plus $100.000 for shipping and installation, the new machine will be depreciated on a salire basis for an estimated iffe of 13 years although it will be used for only ten years. It will require 50,00 net working capital. The NWC maintains its level of 50,000 in years 1 through The NWC will decrease to $48.000 by the end of year in then fully recovered by the end of year tent. The old machine is fully depreciated but is expected be sold for 500,000 of the new machine is purchased. The old machine is currently generating $156,000 per year of EBIT and, if not replaced, is expected to keep penerating the same EBIT for the next ten years. The new machine is expected to generate $420,000 in EBIT per year for 10 years. At the end of year ten it will be sold for $180,000. The applicable tax rates 40 The total net initial investments 51.621.200 11.450.000 $1.700.000 51.607.000