One year? ago, your company purchased a machine used in manufacturing for $ 95 comma 000....

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One year? ago, your company purchased a machine used inmanufacturing for $ 95 comma 000. You have learned that a newmachine is available that offers many advantages and you canpurchase it for $ 150 comma 000 today. It will be depreciated on a?straight-line basis over 10 years and has no salvage value. Youexpect that the new machine will produce a gross margin? (revenuesminus operating expenses other than? depreciation) of $ 45 comma000 per year for the next 10 years. The current machine is expectedto produce a gross margin of $ 21 comma 000 per year. The currentmachine is being depreciated on a? straight-line basis over auseful life of 11? years, and has no salvage? value, sodepreciation expense for the current machine is $ 8 comma 636 peryear. The market value today of the current machine is $ 50 comma000. Your? company's tax rate is 40 %?, and the opportunity cost ofcapital for this type of equipment is 11 %. Should your companyreplace its? year-old machine? The NPV of replacing the? year-oldmachine is ?$ nothing. ?(Round to the nearest? dollar.)

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One year? ago, your company purchased a machine used inmanufacturing for $ 95 comma 000. You have learned that a newmachine is available that offers many advantages and you canpurchase it for $ 150 comma 000 today. It will be depreciated on a?straight-line basis over 10 years and has no salvage value. Youexpect that the new machine will produce a gross margin? (revenuesminus operating expenses other than? depreciation) of $ 45 comma000 per year for the next 10 years. The current machine is expectedto produce a gross margin of $ 21 comma 000 per year. The currentmachine is being depreciated on a? straight-line basis over auseful life of 11? years, and has no salvage? value, sodepreciation expense for the current machine is $ 8 comma 636 peryear. The market value today of the current machine is $ 50 comma000. Your? company's tax rate is 40 %?, and the opportunity cost ofcapital for this type of equipment is 11 %. Should your companyreplace its? year-old machine? The NPV of replacing the? year-oldmachine is ?$ nothing. ?(Round to the nearest? dollar.)