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X Company is considering replacing one of its machines in order to save operating costs. The following information is available: Current machine Current sales value
X Company is considering replacing one of its machines in order to save operating costs. The following information is available:
Current machine | |
Current sales value | $6,000 |
Final sales value | 0 |
Operating costs | 60,000 |
New machine | |
Purchase cost | $70,000 |
Final sales value | 2,500 |
Operating costs | 49,000 |
Both machines will last for 6 more years.
Assuming a discount rate of 8%, what is the incremental net present value of replacing the current machine with the new machine?
X Company is considering replacing one of its machines in order to save operating costs. The following information is available: $6,000 0 60,000 Current machine Current sales value Final sales value Operating costs New machine Purchase cost Final sales value Operating costs $70,000 2,500 49,000 Both machines will last for 6 more years. Assuming a discount rate of 8%, what is the incremental net present value of replacing the current machine with the new machine? Submit Answer Tries 0/3Step by Step Solution
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