Q$\mathrm{.}1.$ ?XYZ Itd is considering to replace one of its existing machine with new one. Assume the company has only this machine in the block which is subject to depreciation of $20$ ?percent on WDV basis. Should the company replace the machine?

$\backslash$table$[[$Existing machine,New machine$],[$One full time operator salary, $36,000,$Fully automated no operator is required$],[$Variable overtime $3000,$Cost of new machine $180000],[$Fringe benefits $3000,$Transport charges $3000],[$Cost of defects $3000,$Installation costs $15000],[$Price of existing machine $60000,$Expected life $5$ ?years$],[$Useful life $5$ ?years,Annual maintenance $3000],[$Salvage value of the machine $36,000,$Cost of defects $3000],[$Tax rate $35\%,$Salvage value at year $5$ ?year $20000],[$Required rate of returm $15\%,]]$

$\backslash$table$[[$Year$,1,2,3,4,5,6],[$PV Factor $($a $15\%,0\mathrm{.}870,0\mathrm{.}756,0\mathrm{.}658,0\mathrm{.}572,0\mathrm{.}497,0\mathrm{.}432]]$