| (Time allowance 7 minutes) There is only one question and it is for the replace later decision: What is the operating cash flow (OCF) for the analysis of replace I year later for the following example? You are facing the decision of whether to replace an old machine at your factory, A new machine will cost $8 to purchase it now and the yearly maintenance expenses will be $25 a year. The new machine has a life of 5 years at which time it is estimated it can be sold for S26. 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 S46 today. However, if the old machine is not replaced today, it will continue to be depreciated down to zero using straight line method over its remaining 4 years. The remaining book value today for the old machine is $24. It is estimated that the old machine can be sold for $25 in one year (ot the end your 1). The maintenance cost per year for the old machine will be $13. Assume that the discount rate is 12% and the tax rate is 20% In answering the question, enter your answer en millions of dollars and use/round to two decimals, and do not use the dollar ($) sign. For example if your answer is $12.500,340 then enter 12.50, if answer is 5537.459 then enter 0.54: it the answer is $40,000,000 then enter 40.00 The OCF for the replace I year later is