Question: please show all work Replacement Analysis Kenley Corp is looking to replace some of their old equipment. Old Equipment can last 6 more years: Depreciation
Replacement Analysis Kenley Corp is looking to replace some of their old equipment. 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 $550 $325 $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 $13,000 $1,300 $2,000 $1,500 25.00% WACC 14.00% MACRS Year 1 Year 2 Year 3 20.00% 32.00% 19.20% Year 4 11.52% Year 5 11.52% 5.76% Year 6 Find the NPV, PI, Payback, IRR and MIRR
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