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One year? ago, your company purchased a machine used inmanufacturing for $105,000. You have learned that a new machine isavailable that offers many advantages and you can purchase it for$140,000 today. It will be depreciated on a? straight-line basisover 10 years and has no salvage value. You expect that the newmachine will produce a gross margin? (revenues minus operatingexpenses other than? depreciation) of $35,000 per year for the next10 years. The current machine is expected to produce a gross marginof $20,000 per 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$9,545 per year. The market value today of the current machine is$65,000. Your? company's tax rate is 45%?, and the opportunity costof capital for this type of equipment is 11%. Should your companyreplace its? year-old machine?