(individual steps in a problem). This is a question for the replace later decision. You are facing the decision of whether to replace an old machine at your factory. A new machine will cost $33 to purchase it now and the yearly maintenance expenses will be $14 a year. The new machine has a life of 5 years at which time it is estimated it can be sold for $9. The new machine will be depreciated down to zero over 5 years using straight-line depreciation. If the new machine is purchased, the old machine can be sold today for $10. However, if the old machine is not replaced today, it will continue to be depreciated down to zero using straight-line method over its remaining 4 years. The remaining book value today of the old machine is $7. It is estimated that the old machine can be sold for $4 in one year (at the end year 1). The maintenance cost per year for the old machine will be $10. Assume that the discount rate is 12% and the tax rate is 40%. (individual steps in a problem). This is a question for the replace later decision. You are facing the decision of whether to replace an old machine at your factory. A new machine will cost $33 to purchase it now and the yearly maintenance expenses will be $14 a year. The new machine has a life of 5 years at which time it is estimated it can be sold for $9. The new machine will be depreciated down to zero over 5 years using straight-line depreciation. If the new machine is purchased, the old machine can be sold today for $10. However, if the old machine is not replaced today, it will continue to be depreciated down to zero using straight-line method over its remaining 4 years. The remaining book value today of the old machine is $7. It is estimated that the old machine can be sold for $4 in one year (at the end year 1). The maintenance cost per year for the old machine will be $10. Assume that the discount rate is 12% and the tax rate is 40%