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One year? ago, your company purchased a machine used inmanufacturing for $95,000.You have learned that a new machine is available that offersmany advantages and you can purchase it for $165,000today. It will be depreciated on a? straight-line basis over 10years and has no salvage value. You expect that the new machinewill produce a gross margin? (revenues minus operating expensesother than? depreciation) of $45,000per year for the next 10 years. The current machine is expectedto produce a gross margin of $24,000per year. The current machine is being depreciated on a?straight-line basis over a useful life of 11? years, and has nosalvage? value, so depreciation expense for the current machine is$8,636 per year. The market value today of the current machine is$60,000. Your? company's tax rate is 40%?, and the opportunity costof capital for this type of equipment is 12%.The NPV of replacing the? year-old machine is $ (Round to thenearest? dollar.)Should your company replace its? year-old machine??(Y/N)