Question $2$

A firm is considering when to replace the old machine with a new one.

The new machine under consideration costs $$38,000.$

The new machine lasts for $3$ years, will be depreciated using a straight$-$line method to zero over the machine's life,

Assume at the end of machine life, it recovers a market salvage value of $$9,500.$

The annual operating cost will be $$4,560$ before tax. Assume corporate tax rate is $31\%$ and discount rate is $9\%.$

What is after tax salvage value $

what is annual operating cash flow $

what is net present value of the new machine $

what is equivalent annual cost $($EAC$)$ of this machine$($enter cost as negative cash flow$)?$ $

$($Do not round intermediate steps; keep at least $6$ or more decimal places during the calculation.

Format and round final answers into dollar amount, no decimal places.

Do not enter any text such as as $"$$$",","$ or space, just numerical numbers; for example, for answer of $$123,456\mathrm{.}19,$ enter only $123456.$

If an answer is negative, enter the minus sign$)\text{'}$