30. [Ch 10] You are considering replacing a robotic assembly system that has a remaining...
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30. [Ch 10] You are considering replacing a robotic assembly system that has a remaining useful life of 8 years and is being depreciated at $70,000 per year. The replacement assembly system operates at the same efficiency, and it also has a life of 8 years. The replacement system would be depreciated at $80,000 per year. Assume all other costs of operating the two machines are identical. Your firm has a marginal tax rate of 30 percent. What is the ongoing operating cash flow consequence of the replacement? a. none; both machines have the same efficiency and useful lives b. increase operating cash flow by $3,000 per year c. decrease operating cash flow by $3,000 per year d. increase operating cash flow by $10,000 per year e. decrease operating cash flow by $10,000 per year f. increase operating cash flow by $24,000 per year g. decrease operating cash flow by $24,000 per year
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