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Your corporation is considering replacing older equipment. The old machine is fully depreciated and cost ( $ 54,667.00 ) seven years ago. The old equipment

image text in transcribed Your corporation is considering replacing older equipment. The old machine is fully depreciated and cost \\( \\$ 54,667.00 \\) seven years ago. The old equipment currently has no market value. The new equipment cost \\( \\$ 76,147.00 \\). The new equipment will be depreciated to zero using straight-line depreciation for the four-year life of the project. At the end of the project the equipment is expected to have a salvage value of \\( \\$ 34,203.00 \\). The new equipment is expected to save the firm \\( \\$ 24,622.00 \\) annually by increasing efficiency and cost savings. The corporation has tax rate of \26.80 and a required return on capital of \12.33. Please enter your answers with two decimal places, as these are dollar amounts. A. What is the total initial cash outflow? (Show as a negative number): \\( \\$ \\) B. What are the estimated annual operating cash flows? \\$ C. What is the terminal cash flow? \\( \\$ \\) D. What is the NPV for this project? \\( \\$ \\)

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