One year​ ago, your company purchased a machine used in manufacturing for $115,000.You have learned that a new machine i

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One year​ ago, your company purchased a machine used in
manufacturing for $115,000.You have learned that a new machine is
available that offers many advantages and you can purchase it
for$165,000today. It will be depreciated on a​ straight-line
basis over 10 years and has no salvage value. You expect that the
new machine will produce a gross margin​ (revenues minus
operating expenses other than​ depreciation) of $35,000 per
year for the next 10 years. The current machine is expected to
produce a gross margin of$25,000 per year. The current machine is
being depreciated on a​ straight-line basis over a useful life
of 11​ years, and has no salvage​ value, so depreciation
expense for the current machine is$10,455 per year. The market
value today of the current machine is $50,000. Your​ company's
tax rate is 42%​, and the opportunity cost of capital for this type
of equipment is 11%. Should your company replace its​ year-old
machine?
What is The NPV of replacing the​ year-old machine?