(Time allowance: 10 minutes) There is only one question and it is for the replace now decision: What is the EAC for the replace now decision? You are facing the decision of whether to replace an old machine at your factory. A new machine will cost $24 to purchase it now and the yearly maintenance expenses will be $12 a year. The new machine has a life of 5 years at which time it is estimated it can be sold for $9. The new machine will be depreciated down to zero over 5 years using straight-line depreciation. If the new machine is purchased, the old machine can be sold today for $17. However, if the old machine is not replaced today, it will continue to be deprecinted down to zero using straight-line method over its remaining 4 years. It is estimated that the old machine can be sold for S2 in one year (at the end year 1). The maintenance cost per year for the old machine will be $5. Assume that the discount rate is 8% and the tax rate is 40% In answering the question, enter your answer en millions of dollars and use round to two decimals, and do not use the dollar (S) sign. For example if your answer is $12,500,340 then enter 12,50; if answer is $537,459 then enter 0.54; if the answer is $40,000,000 then enter 40.00 The EAC for the replace now decision is Vair Ant (Time allowance: 10 minutes) There is only one question and it is for the replace now decision: What is the EAC for the replace now decision? You are facing the decision of whether to replace an old machine at your factory. A new machine will cost $24 to purchase it now and the yearly maintenance expenses will be $12 a year. The new machine has a life of 5 years at which time it is estimated it can be sold for $9. The new machine will be depreciated down to zero over 5 years using straight-line depreciation. If the new machine is purchased, the old machine can be sold today for $17. However, if the old machine is not replaced today, it will continue to be deprecinted down to zero using straight-line method over its remaining 4 years. It is estimated that the old machine can be sold for S2 in one year (at the end year 1). The maintenance cost per year for the old machine will be $5. Assume that the discount rate is 8% and the tax rate is 40% In answering the question, enter your answer en millions of dollars and use round to two decimals, and do not use the dollar (S) sign. For example if your answer is $12,500,340 then enter 12,50; if answer is $537,459 then enter 0.54; if the answer is $40,000,000 then enter 40.00 The EAC for the replace now decision is Vair Ant