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X Company is considering replacing one of its machines in order to save operating costs. The following information is available: $4,000 0 69,000 Current machine
X Company is considering replacing one of its machines in order to save operating costs. The following information is available: $4,000 0 69,000 Current machine Current sales value Final sales value Operating costs New machine Purchase cost Final sales value Operating cost savings $72,000 1,500 28,000 Both machines will last for 4 more years. Assuming a discount rate of 8%, what is the incremental net present value of replacing the current machine with the new machine
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