QUESTION 31 S! Join River Shipyards' welding machine ls 10 years old, fully depreciated and has no salvage value However, even though it is old, it is still functlonal as originally designed and can be used for quto a while longer St Johns River Shipyards is considering replacing the old welder with a new welder. The new welder will cost $200,000 and have an estimated life of & years with no selvage value The new wolder will be much more efficient, however, and this enhanced officiency will increase eamings before depreciation by $55,000 per year The new machine walce deprecated over a 5 year o using straight the depreciation. The applicable corporate tax rate is 40%, and the project cost of capital is 10% Find the NPV and determine whether the old welder should be replaced by the new one? The NPV of the project is $154073.53 and the old welder should be replaced. The NPV of the project is $36.705.15 and the old welder should be replaced. The NPV of the project is $93.420.94 and the old weider should be replaced The NPV of the project is 5-23.947.44 and the old welder should not be replaced. The NPV of the project is 5 12768404 and the old welder should be replaced