14 E View Policies Current Attempt in Progress Sunland Corp. is planning to replace an old asset with new equipment that will operate more efficiently. The following amounts may be relevant to this analysis. Cost of old asset $13,000 Book value of old asset $1,800 Selling price of old asset $1,800 Purchase price of new replacement asset $20,000 Estimated salvage value of new asset $2,100 Estimated useful life of new asset 5 years Estimated annual net operating cash inflows $3,000 /year for 5 years Discount rate 10% Tax rate 20% Determine which amounts listed are relevant cash flows for Sunland Corp. as it considers this asset sale and replacement. Cost of old asset Irrelevant v Book value of old asset Irrelevant Selling price of old asset Relevant Purchase price of new replacement asset Relevant Estimated salvage value of new asset Relevant Estimated annual net operating cash inflows Relevant Then, find the NPV of the new investment. (Round present value factor calculations to 5 decimal places, eg. 1.25124 and final answer to 2 (5,125.36).) decimal places e g. 5,125.36. Enter negative amounts using either a negative sign preceding the number, e.g. -5.125.36 or parentheses, e.g. Click here to view the factor table NPV $Book value of old asset rrelevant Selling price of old asset Relevant Purchase price of new replacement asset Relevant Estimated salvage value of new asset Relevant Estimated annual net operating cash inflows Relevant V Then, find the NPV of the new investment. (Round present value factor calculations to $ decimal places, e.g. 1.25124 and final answer to 2 decimal places e.g. 5.125.36. Enter negative amounts using either a negative sign preceding the nur as. 125.36 or parentheses, e.g. (5,125.36).) Click here to view the factor table NPV eTextbook and Media Save for Later Attempts: 0 of 2 used Submit