View Policies Show Attempt History Current Attempt in Progress Madden Limited is the largest Canadian producer of dairy products. The company needs to replace its equipment. The current equipment was purchased 18 years ago at a cost of $2 million, and it was depreciated over a 20-year period using the straight-line method, assuming no expected salvage value. Management believes that, currently, the equipment could be sold for $140,000. The new equipment would cost $2,842,000 and have an expected residual value of $524,000 at the end of its estimated life of 10 years. With the new equipment, the current operating costs of $1.60 million would decrease by 30% in year 1, remain at that level for year 2 and year 3, decrease by another 10% in year 4, and remain at that level for the remaining life of the asset. With the new equipment, the company would have to hire another operator at an annual cost of $30,700. The company's cost of capital is 11%. Your answer is incorrect. Assuming that the company decides to buy the new equipment now, calculate the initial investment. Initial investment $ $ 2702000 e Textbook and Media CO 2000 Fall 2....doc Exemple-lettre-C....pdf