Question: 1 . Davis Inc. is considering buying a new machine for $ 5 million. This would replace an old machine that they had bought five
Davis Inc. is considering buying a new machine for $ million. This would replace an old machine that they had bought five years ago for $ million. The old machine was being depreciated using the straight line method and had a year useful life when it was first purchased. They could not sell it at this point since the old machine technology is obsolete. If Davis decides to buy the new machine and replace the old one, what is the change in capital expenditure for the investment? Davis tax rate is Show your work
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