Question: please solve this example of full question fully solved Homework: Lab #2 Question 12, Problem 9-13 Part 1 of 2 HW Score: 32.68%, 17.65 of
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Homework: Lab #2 Question 12, Problem 9-13 Part 1 of 2 HW Score: 32.68%, 17.65 of 54 points Points: 0 of 4 Save One year ago, your company purchased a machine used in manufacturing for $100,000. You have learned that a new machine is available that offers many advantages and that you can purchase it for $140,000 today. The CCA rate applicable both machines is 40%; neither machine will have any long-term salvage value. You expect that the new machine will produce earnings before interest, taxes, depreciation, and amortization (EBITDA) of $35,000 per year for the next 10 years. The current machine is expected to produce EBITDA of $22,000 per year. All other expenses of the two machines are identical. The market value today of the current machine is $50,000. Your company's tax rate is 42%, and the opportunity cost of capital for this type of equipment is 11%. Should your company replace its year-old machine? ? Help What is the NPV of replacement? The NPV of replacement is $ (Round to the nearest dollar.) 5 Help me solve this View an example Ask my instructor Clear all Check answer ut Help O HW Score: 32.68%, 17.65 of 54 points Question 12, Problem 9-13 Part 2 of 2 Homework: Lab #2 O Points: 0 of 4 Save One year ago, your company purchased a machine used in manufacturing for $105,000. You have learned that a new machine is available that offers many advantages and that you can purchase it for $150,000 today. The CCA rate applicable to both machines is 30%; neither machine will have any long-term salvage value. You expect that the new machine will produce earnings before interest, taxes, depreciation, and amortization (EBITDA) of $35,000 per year for the next 10 years. The current machine is expected to produce EBITDA of $20,000 per year. All other expenses of the two machines are identical. The market value today of the current machine is $50,000. Your company's tax rate is 40%, and the opportunity cost of capital for this type of equipment is 10%. Should your company replace its year-old machine? (?) Help What is the NPV of replacement? The NPV of replacement is $ 16,063. (Round to the nearest dollar.) Should your company replace its year-old machine? O A. Yes, because a new machine will always be an improvement for the company. O B. Yes, because there is a profit from replacing the machine. O C. No, because there is a loss from replacing the machine. O D. No, because the only time a machine should be replaced is when it stops working completely. #5 Help me solve this View an example Ask my instructor Clear all Check answer ut Help Homework: Lab #2 Question 12, Problem 9-13 Part 1 of 2 HW Score: 32.68%, 17.65 of 54 points Points: 0 of 4 Save One year ago, your company purchased a machine used in manufacturing for $100,000. You have learned that a new machine is available that offers many advantages and that you can purchase it for $140,000 today. The CCA rate applicable both machines is 40%; neither machine will have any long-term salvage value. You expect that the new machine will produce earnings before interest, taxes, depreciation, and amortization (EBITDA) of $35,000 per year for the next 10 years. The current machine is expected to produce EBITDA of $22,000 per year. All other expenses of the two machines are identical. The market value today of the current machine is $50,000. Your company's tax rate is 42%, and the opportunity cost of capital for this type of equipment is 11%. Should your company replace its year-old machine? ? Help What is the NPV of replacement? The NPV of replacement is $ (Round to the nearest dollar.) 5 Help me solve this View an example Ask my instructor Clear all Check answer ut Help O HW Score: 32.68%, 17.65 of 54 points Question 12, Problem 9-13 Part 2 of 2 Homework: Lab #2 O Points: 0 of 4 Save One year ago, your company purchased a machine used in manufacturing for $105,000. You have learned that a new machine is available that offers many advantages and that you can purchase it for $150,000 today. The CCA rate applicable to both machines is 30%; neither machine will have any long-term salvage value. You expect that the new machine will produce earnings before interest, taxes, depreciation, and amortization (EBITDA) of $35,000 per year for the next 10 years. The current machine is expected to produce EBITDA of $20,000 per year. All other expenses of the two machines are identical. The market value today of the current machine is $50,000. Your company's tax rate is 40%, and the opportunity cost of capital for this type of equipment is 10%. Should your company replace its year-old machine? (?) Help What is the NPV of replacement? The NPV of replacement is $ 16,063. (Round to the nearest dollar.) Should your company replace its year-old machine? O A. Yes, because a new machine will always be an improvement for the company. O B. Yes, because there is a profit from replacing the machine. O C. No, because there is a loss from replacing the machine. O D. No, because the only time a machine should be replaced is when it stops working completely. #5 Help me solve this View an example Ask my instructor Clear all Check answer ut Help
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