Old machine scop value Increased proth \begin{tabular}{lr|} \hline Phcount mato & 12% \\ \hline Purchase pnce of new mactine & 15.000 \\ \hline Scrap value of new machine & 10,000 \\ \hline Tax rale & 345 \\ \hline \end{tabular} EAITDA Deprecation EBIT Tames NOPAT Canh Flow Estimating Ca Flows Droppitt Parcel Company is considering purchasing new equipment to replace existing equipment that has a book value of zero and a market value of $15,000. New equipment costs $90,000 and is expected to provide production savings and increased profits of $20,000 per year for the next 10 years. New equipment has expected useful life of 10 years, after which its estimated salvage value would be $10,000. GDS depreciation is assumed. The effective tax rate is 34% and the discount rate is 12%. "New Machinery Purchase" Problem: Should Droppitt purchase the new equipment