Eignment: Chapter 12 - EOC Questions (CNOW) Amiento 0.00% Save Sant Assignment for Grading estions Problem 12.04 (Replacement Analysis) Question of 10 Check Sty Work (armaining) Book The Oviedo Company is considering the purchase of a new machine to replace an obsolete one. The machine being used for the operation as a book value and market value of 2. However, the machine is in good working order and will last at least another 10 years. The proposed replacement machine will perform the operation so much more efficiently that Oviedo's engineers estimate that it will produce after-tax cash flows (labor savings) of 39,000 per year. The after-tax cost of the new machine is $40,000, and its economic life is estimated to be 10 years. It has zero salvage value. The firm's WACC is 10%, and its marginal tax rate is 28. Should Oviede buy the new machine Oviedo Select v purchase the new machine Check My Work (a remaining 0 key