Answer questions 11 and 12 based upon the following information:

Answer questions 11 and 12 based upon the following information: A company is trying to determine the optimal replacement cycle for a machine that has a useful life of 5 years but can be replaced before that. t If the machine is purchased, operated for one year and then sold at the end of year 1, the NPV is $100,000. If the machine is purchased, operated for two years and then sold at the end of year 2, the NPV is $200,000. IAA If the machine is purchased, operated for three years and then sold at the end of year 3, the NPV is $290,000. If the machine is purchased, operated for four years and then sold at the end of year 4, the NPV is $560,00.GA S360,000 If the machine is purchased, operated for five years and then sold at the end of year 5, the NPV is $410,000 The appropriate discount rate for this machine is 13%. Q 11. The equivalent perpetuity of replacing every five years is closest to S82,111 S113,000 $116,569 Zero Q12. It is most valuable to replace the machine Every year Every two years Every three years a. b. d. very four years