Question: A firm is considering when to replace the old machine with a new one. The new machine under consideration costs $37,000. The new machine lasts

A firm is considering when to replace the old machine with a new one. The new machine under consideration costs $37,000. The new machine lasts for 6 years, will be depreciated using a straight-line method to zero over the machine's life. Assume at the end of machine life, it recovers a market salvage value of $7,400 . The annual operating cost will be $5,180 before tax. Assume corporate tax rate is 32% and discount rate is 13%

.What is after tax salvage value $

what is annual operating cash flow $

what is net present value of the new machine $

what is equivalent annual cost (EAC) of this machine(enter cost as negative cash flow)?

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