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You are facing the decision of whether to replace an old machine at your factory. A new machine will cost $26 to purchase it now

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You are facing the decision of whether to replace an old machine at your factory. A new machine will cost $26 to purchase it now and the yearly maintenance expenses will be $10 a year. The new machine has a life of 5 years at which time it is estimated it can be sold for $9. The new machine will be depreciated down to zero over 5 years using straight-line depreciation. If the new machine is purchased, the old machine can be sold today for $19. However, if the old machine is not replaced today, it will continue to be depreciated down to zero using straight-line method over its remaining 4 years. It is estimated that the old machine can be sold for $3 in one year (at the end year 1 ). The maintenance cost per year for the old machine will be $6. Assume that the discount rate is 9% and the tax rate is 30%. In answering the question, enter your answer en millions of dollars and use/round to two decimals, and do not-use the dollar ( $ ) sign. For example if your answer is $12,500,340 then enter 12.50; if answer is $537,459 then enter 0.54; if the answer is $40,000,000 then enter 40.00 The EAC for the replace now decision is Your

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