4 Assignment6_NPV_Part 6 Saved Help Save & Exit Check my work mode: This shows what is correct or incorrect for the work you have completed so far. It does not indicate completion Return to quest As a result of improvements in product engineering, United Automation is able to sell one of its two milling machines. Both machines perform the same function but differ in age. The newer machine could be sold today for $72,500. Its operating costs are $23,000 a year, but at the end of five years, the machine will require a $18,500 overhaul (which is tax deductible). Thereafter, operating costs will be $31,500 until the machine is finally sold in year 10 for $7,250. The older machine could be sold today for $26,500. if it is kept, it will need an immediate $27,500 (tax deductible) overhaul Thereafter operating costs will be $36,900 a year until the machine is finally sold in year 5 for $7.250 Both machines are fully depreciated for tax purposes. The company pays tax at 21% Cash flows have been forecasted in real terms The real cost of capital is 11% a. Calculate the equivalent annual costs for selling the new machine and for selling the old machine (Do not round intermediate calculations. Enter your answers as a positive value rounded to 2 decimal places.) Answer is complete but not entirely correct. Equivalent Annual Cost 26 361563 2741 10 Sall new machine Sell old machine