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URGENT! Please answer fast! TIA One year ago, your company purchased a machino used in manulacturing for $105,000. You have loamod that a new machine

URGENT! Please answer fast! TIA
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One year ago, your company purchased a machino used in manulacturing for $105,000. You have loamod that a new machine is avalkable that offers many advantagos and you can purchese il for $160,000 lodiyy it will be depreciated on a straightline basis over 10 years and has no salvge value. You oxpect that the new machino will produce a gross maigin (revenues minus operaing expensos other than depreciation) of $35,000 per year for tho next 10 yoars. The currenk machino is axpectod lo produce a gross margin of $23, 000 per year, The current machine is being depreciated on a straightutne basis over a uselul Me of 11 years, and has no salvage value, so depreciation exponse for the cunent machine is $9.545 per year. The marlot value today of the curent machine is $55. Coc Your compary's tax mote is 45 th, and the ooportunity cost of copital for this type of oqupment is 12%. Should your compary toplace its year-old machine? The NPV of replacing the year-old machine is : (Round to twe nearest dollar) Should your compny regisce fis year-old machine? (Stiod the best choice below ) A. Yes, there is a profit hom reolacing the machino B. No, there is a loss from replscing the machine

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