Assignment: Chapter 12 - EOC Questions (CNOW) Assignment Score: 9.09% Save :: Submit Assignment for Grading Questions Problem 12.11 (Replacement Analysis) Question 2 of 11 1. Check My Work (2 remaining) 9 2. 3. . . eBook 4. 5. 6. St. Johns River Shipyards is considering the replacement of an 8-year-old riveting machine with a new one that will increase o earnings before depreciation from $24,000 to $50,000 per year. The new machine will cost $80,000, and it will have an estimated life of 8 years and no salvage value. The new riveting machine is eligible for 100% bonus depreciation at the time of purchase. The applicable corporate tax rate is 25%, and the firm's WACC is 14%. The old machine has been fully depreciated and has no salvage value. What is the NPV of the project? Negative value, if any, should be indicated by a minus sign. Round your answer to the nearest cent. 0 7. . 8. 9. $ 10. Chould the nld riveting machine be replaced by the new one? -Select- 11. Yes No Check My Work (2 remaining) Icon Key Problem 12.11 (Replacement Analysis) Question 2 of 11 Save Submit Assignment for Grading