Question: Athough the Chen Compony's miling machine is old, it is still in relatively good working order and would last for another 10 yaars. it is

 Athough the Chen Compony's miling machine is old, it is still

Athough the Chen Compony's miling machine is old, it is still in relatively good working order and would last for another 10 yaars. it is inerficient compared to modern standards, though, and so the company is considening repiacing it. The niw miting machye, ot a cost of 5116,000 deilvered and installed, would also last for 19 years and would produce after-tax cash fows (labor savings and depreciation tax savings) af 418,900 per yean It would have zero satvage value at the end of its ufe. The project cost of capital is 11%, and its marginal tax rate is 25%. Should Chen buy the new machine? Do not round intermediate caiculations. Round your answer to the nearest cent. Negative value, if any, should be indicated by a minus sign. NPV: 5 Chen purchase the new machine

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