Although the Chen Company's milling machine is old, it is still in relatively good working...
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Although the Chen Company's milling machine is old, it is still in relatively good working order and would last for another years. It is inefficient compared to modern standards, though, and so
the company is considering replacing it The new milling machine, at a cost of $ delivered and installed, would also last for years and would produce aftertax cash flows labor savings
and depreciation tax savings of $ per year. It would have zero salvage value at the end of its life. The project cost of capital is and its marginal tax rate is Should Chen buy the
new machine? Do not round intermediate calculations. Round your answer to the nearest cent. Negative value, if any, should be indicated by a minus sign.
NPV: $
Chen
Select
purchase the new machine.
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