Question: pleaee show work Replacement Analysis Kenley Corp is looking to replace some of their old equipment $550 $325 Old Equipment can last 6 more years:
Replacement Analysis Kenley Corp is looking to replace some of their old equipment $550 $325 Old Equipment can last 6 more years: Depreciation expense, Years 1 to 5 Depreciation expense, Year 6 Current book value Current market value Market value, Year 6 $3,575 $4,150 $800 6 New Equipment: Estimated useful life (in years) Purchase price Sell for in Year 6 Annual savings Working Capital Tax rate WACC $13,000 $1,300 $2,000 $1,500 25.00% 14.00% MACRS Year 1 Year 2 20.00% 32.00% 19.20% Year 3 Year 4 Year 5 Year 6 11.52% 11.52% 5.76% Find the NPV, PI. Payback, IRR and MIRR
Step by Step Solution
There are 3 Steps involved in it
Get step-by-step solutions from verified subject matter experts
