as Problem 12.10 (Replacement Analysis) Question ? Check My Work (3 remaining eBook The Deuter Toy Corporation Currently uses en injection molding machine thet was purchased prior to the new lax legislation. This incine is being depreciated on a straight-line besis, and it has Speers o remaining life. Its current book velue is $2,400, and it can be sold for $2,500 at this time. Thus, the annual depreciation expense is $2,400,6 - $400 per year I the old machine is not repreced, it can be sold for $500 at the end o its useful life. Dauten is offered a replacement machine which has a cost of $8.000, an estimated useful life of o years, and an estimated salvege value of SYUO. The replacement machine is eligible for 100% bonus depreciation at the time of purchase. The replacement machine would permitan cutput expansion, 20 sales would rise by $1,000 per year; even su, the new machine's much greater efficiency would cause operating expenses te decine by $1,500 per year. The new rectine would require that inventories be increased by $2,000, but accounts payable would smultaneously increase by $800. Deuter's marginal federal-plus-stede tex rate is 25%, and its WACC is 11. What is the NPV of the incremental esch flow stream? Negative value, Fany, should be indicated by a minus sign. Round your answer to the nearest cere Should the company replace the od machine? -Seleste Check My Work maining) 0-Juke