Question: 1 2 . A firm plans to replace an old machine with a new one. The old machine has a book value of $ 5

12. A firm plans to replace an old machine with a new one. The old machine has a book value of $50,000 and a market value of $30,000. The new machine costs $120,000 and has an expected life of 7 years. If the firm's tax rate is 30%, determine the after-tax cash flow for the replacement decision.

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