Question: Suppose that your current machine is outdated, as the Chief Financial Officer, you feel that the firm would benefit from replacing the current machine. You

Suppose that your current machine is outdated, as the Chief Financial Officer, you feel that the firm would benefit from replacing the current machine. You have estimated an increase in revenue of $35,000 and a savings in operating costs from $200,000 annually to $150,000 annually. The WACC is 10%. However, your required return for this project is 12%

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