Question: please answer before 12am midnight PST for a great rating As a result of improvernents in preduct engineeting. United Automation is able to sell one

please answer before 12am midnight PST for a great rating
please answer before 12am midnight PST for a great rating As a

As a result of improvernents in preduct engineeting. United Automation is able to sell one of its two milling machines. Both machines perform the same function but differ in age. The newer machine could be sold todoy for $56.000. its operating costs are $20.800 a yoat, but at the end of five years, the machine will require a $19,600 overhaul (which is tax deductiblo). Thereafter, operating costs wili be $30,400 unil the machine is finally soid in year 10 for $5,600. The older machine could be sold today for. $25,400. If a is kept, it will need an immedlate $22,000 (tax-deductible) overhaul. Thereafter, operating costs will be $31,900 a year until the machine is finaly sold in year 5 for $5,600. Both machines are fully depreciated for tax purposes. The company pays tax at 21\%. Cash flows havo been forecasted in reai terms. The real cost of capital is 8%. a. Colculate the equivalint annual costs for gelling the new machine and for selling the old machine. (Do not round intermediate calculations. Enter your answers as a pasitive value rounded to 2 decimal piaces.) b. Which machine should United Automation serr? Sell new machine Sel old machine

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