The company had an old machine:
The cost $ the life years the residual salvage value $
The annual depreciation
After five years, the book value of the machine cost accumulated depreciation
The market value fair value or sale value $
The tax rate for the capital gain
The capital gain market value book value
The tax
The cost of the new machine $
The life years
The salvage
The annual depreciation for the new machine
The tax saving from the increase in depreciation:
The increase of annual depreciation
The increase in income because of using the new machine
The discount rate
The investment cost the cost of new machine sales value of old machine tax for capital gain
The annual tax new income increase in depreciation
The NPV is so we advise to the machine.
