Question: Current Attempt in Progress Cullumber Partners is evaluating the replacement of an older machine with either the new SuperPlus or MaxPlus machine. The market

Current Attempt in Progress Cullumber Partners is evaluating the replacement of an

Current Attempt in Progress Cullumber Partners is evaluating the replacement of an older machine with either the new SuperPlus or MaxPlus machine. The market value of the original machine is $8,000 but it has an expected salvage value of $1,000 in 5 years. The details regarding the two new machines are as follows: Reduced Annual Pretax Machine Cost Useful Life Salvage Value Operating Cash Flows SuperPlus MaxPlus $25,000 5 years $2,000 $5,700 $38,000 5 years $3,000 $5,900 The company's tax rate is 40% and the machines are Class 10 assets with a 30% CCA rate. The company's required return is 11%. Estimate the NPV of replacement. (Enter negative amounts using either a negative sign preceding the number e.g. -45 or parentheses e.g. (45). Round intermediate and final answers to O decimal places, e.g., 2,345.) NPV of SuperPLUS $ NPV of MaxPLUS $

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