Click here to read the book Replacement Analys REPLACEMENT ANALYSIS The Big Borting Company is contemplating the replacement of one of its botting machines with a newer and more efficient. The old machine has a book value of $550.000 and remaining usele of 5 years. The tom does not expect to realize any return from the machines years, but now to other fom in the instry for $265.000. The old machine is being deprecated by $110,000 per year, using the straight-tne method The new machine a purchase price of $1,100,000, an estimate and MACRS difer, and an estimated salvo 145,000. The applicable depreciation rates are 2,32% 19.12.11 and it is expected to come one power, or, as well as to rede hember of events in town savings $245.000 will be realized the new machine installed. The company's marginal tax rates 35%, and it has 12 WACC. What ini. cathol regured for the remedie? Round your answer to the newest doler. Neve amount should be by minusson 5. Cocuinte real decreciation allowances for both machines and corrove the cente al precio espere he recacement as made and your wowers to the nearest dota. Year Degein Aance Awad Depo 1 5 2 4 5 c. What are the mentales Years 1 th Rd you the restar Year Year Years Year 1 Year 2 d. Should the purchase the machine Select