Problem 10-7 Sensitivity Analysis (LO3) The Rustic Welt Company is proposing to replace Its old welt-making machinery with more modern equipment. The new equipment costs $10.8 million (the existing equipment has zero salvage value). The attraction of the new machinery is that it is expected to cut manufacturing costs from their current level of $9.80 a weit to $5.80. However, as the following table shows, there Is some uncertaint, about both the future sales and the performance of the new machinery: Conduct a sensitivity analysis of the replacement decision assuming a discount rate of 8%. Rustic does not pay taxes. Calculate the NPV. Note: Do not round Intermedlate calculations. Round your answers to the nearest whole dollar amount. Enter your answers In dollars not In millions. Negatlve amounts should be indlcated by a minus slgn. Problem 10-7 Sensitivity Analysis (LO3) The Rustic Welt Company is proposing to replace Its old welt-making machinery with more modern equipment. The new equipment costs $10.8 million (the existing equipment has zero salvage value). The attraction of the new machinery is that it is expected to cut manufacturing costs from their current level of $9.80 a weit to $5.80. However, as the following table shows, there Is some uncertaint, about both the future sales and the performance of the new machinery: Conduct a sensitivity analysis of the replacement decision assuming a discount rate of 8%. Rustic does not pay taxes. Calculate the NPV. Note: Do not round Intermedlate calculations. Round your answers to the nearest whole dollar amount. Enter your answers In dollars not In millions. Negatlve amounts should be indlcated by a minus slgn