The Darten toy corporation currently uses an injection molding machine that was purchase price to the new tax legislation . this machine is being depreciated in a straight-line basis, and its lonely years remaining life. the current book value is 7,100 and it can be sold for 2,40 at this time thus the annual depreciation expense is 2,100/b=350 per year if the 1b machine is not replaced , it can be sold for 500 at the end of its useful life. darten offered 0 replacement machine which has a cost of 2 useful life or 6 years and estimated savage value of 804. the replacement machine is eligible for 100% bonus depreciation at the time of purchase. the replacement machine would perform output expense, so sales will rise by 1,00 er year even,so the new machine is much greater efficient would cause operating expense to decline by 1,500 per year. the new machine require less investing. darten marginal fedderal-plus-state tax rate is 25% and its WACC is 11%
what is the NPV of the incremental cash flow stream round to the nearest cent
should the company replace the old machine