replacement project. \begin{tabular}{|c|c|c|c|c|c|c|c|c|} \hline Machine age & & years & & & & & & \\ \hline years left on straight line depreciation & 6 & years & & & & & & \\ \hline Current book value & 3,000 & & & & & & & \\ \hline Salvage value now & 4,150 & & & & & & & \\ \hline Salvage value at end of life & 800 & & & & & & & \\ \hline Replacement machine cost & 12,000 & & & & & & & \\ \hline Replacement machine life & 6 & years & & & & & & \\ \hline Salvage value at end of life & 1,500 & & & & & & & \\ \hline Depreciation schedule for new machine & & & 20.00% & 32.00% & 19.20% & 11.52% & 11.52% & 5.76% \\ \hline New sales if new machine per year & 2,000 & & & & & & & \\ \hline Reduced expenses & 1,900 & & & & & & & \\ \hline Required increase in inventory & 2,900 & & & & & & & \\ \hline Required increase in AP & 700 & & & & & & & \\ \hline Tax rate & 25% & & & & & & & \\ \hline WACC & 15% & & & & & & & \\ \hline \end{tabular}