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Use the following information for the next 4 questions Brandy is analyzing the replacement of a printing press for her companyThe old machine was purchased

Use the following information for the next 4 questions Brandy is analyzing the replacement of a printing press for her companyThe old machine was purchased 2 years ago for $32,000it falls into the MACRS 5-year class; and it has 3 years of remaining life with a $3.500 salvage value 3 years from now. The current market value of the machine is $ 10,000 The price of a new machine is currently 41,000, plus an additional $ 2,000 for installation 800 for modification, and $ 200 for shipping. The new machine falls into the MACRS 5-year class, has a 3-year economic life, and a 17,000 salvage valueSince the new machine wastes less material, it will require a 1,000 decrease in inventory, although accounts payable is expected to increase by $ 1,000. The new machine is expected to increase revenue by $7,000 per year and increase costs by 1,000 per year. The firm has an 8.5 percent cost of capital and a marginal tax rate of 40 percent. The MACRS -year class uses the following percentages : 20%,32%,19%12%11,6%(in that order)(Round all to nearest dollar.)

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