nemplsm Keep the Highest I 'l I. Problem 11-04 (Replacement Analysis) Replacement Analysis king order and would last for another 10 years. It is inefcient compared to at a cost of $104,000 delivered and installed, would also last at the end Although the Chen Company's milling machine is old, it is still in relatively good wor modern standards, though, and so the company is considering replacing it. The new milling machine, for 10 years and would produce after-tax cash ows (labor savings and depreciation tax savings) of $18,500 per year. It would have zero salvage value of its life. The project cost of capital is 10%, and its marginal tax rate is 25%. Should Chen buy the new machine? Do not round intermediate calculations. Round your answer to the nearest cent. Negative value, if any, should be indicated by a minus sign. NPV: $ Chen seleu- a purchase the new machine. Continue without saving