This is all the information given. There is no discount rate, the new depriciation rates are the MACRS.

Principles of Finance (FIN 3213) Comprehensive Capital Budgeting Problenm Homework 8 and 9, 20 points due Tuesday, November 14, 2017 bracket, The Bellich Company, a manufacturer of electronic components is considering the purchase of a new, fully-automated machine to replace an older, operated one. The machine being replaced, now five years old, origi 10 years. It was being depreciated using the simplified straight-line method from to zero, thus generatin $5,000. The old machine re $3,000 per year in fringe benefits. The annual costs of maintenance and defects associated w the old machine were S6,000 and $3,500, respectively. The replacement machine under consideration has a purchase price of $95,000 and would be depreciated using the MA method using a 5-year recovery period. It is anticipated that the new machine could be sold after five years for $12,000. To get the automated machine in running order, there would be a $3,000 shipping fee and a $2,000 installation charge. In addition, because the new machine would work faster than the old one, revenues are expected to increase by $2500 per year and investment in raw materials and goods-in-process inventories would need to be increased by a total of $8,000. The annual costs of maintenance and defects on the new machine would be S1,500 and $4,000, respectively in the 40% marginal tax manually- nally had an expected life of $25,000 down g $2,500 in depreciation per year. The old machine could be sold today for quired one operator who earned $25,000 per year in salary and CRS MACRS Class of Investment 5-year 20% 32 19 12 ownership year 3-year 33% 45 15 7year 14% 25 17 13 10-year 10% 18 14 12 2 10 Principles of Finance (FIN 3213) Comprehensive Capital Budgeting Problenm Homework 8 and 9, 20 points due Tuesday, November 14, 2017 bracket, The Bellich Company, a manufacturer of electronic components is considering the purchase of a new, fully-automated machine to replace an older, operated one. The machine being replaced, now five years old, origi 10 years. It was being depreciated using the simplified straight-line method from to zero, thus generatin $5,000. The old machine re $3,000 per year in fringe benefits. The annual costs of maintenance and defects associated w the old machine were S6,000 and $3,500, respectively. The replacement machine under consideration has a purchase price of $95,000 and would be depreciated using the MA method using a 5-year recovery period. It is anticipated that the new machine could be sold after five years for $12,000. To get the automated machine in running order, there would be a $3,000 shipping fee and a $2,000 installation charge. In addition, because the new machine would work faster than the old one, revenues are expected to increase by $2500 per year and investment in raw materials and goods-in-process inventories would need to be increased by a total of $8,000. The annual costs of maintenance and defects on the new machine would be S1,500 and $4,000, respectively in the 40% marginal tax manually- nally had an expected life of $25,000 down g $2,500 in depreciation per year. The old machine could be sold today for quired one operator who earned $25,000 per year in salary and CRS MACRS Class of Investment 5-year 20% 32 19 12 ownership year 3-year 33% 45 15 7year 14% 25 17 13 10-year 10% 18 14 12 2 10