Question: 35. (10 points) You are operating an old machine that is expected to generate a cash flow of $5,000 in each of the next

35. (10 points) You are operating an old machine that is expected

35. (10 points) You are operating an old machine that is expected to generate a cash flow of $5,000 in each of the next 3 years before it fails. You can replace it now with a new machine that costs $20,000 but is much more efficient and will generate a cash flow of $10,000 a year for 4 years. Calculate the NPV of each machine to determine whether you should replace the old machine now, based on the NPV criteria. This opportunity cost of capital is 15%..

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