DCF analysis - Comparing two machines (possibly replacing one):

Machine 1:

3 years old
original cost 800,000 (3 years ago)
Straight line depreciation
15 year life
zero salvage value

Machine 2:

cost 900,000
pre-tax labor savings of 100K per year
save $2000 in space per year
Can cell Machine 1 at $400,000 immediately
12 year life
Straight line depreciation

10% discount rate
35% tax rate

Please show excel spreadsheet work.

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DCF Analysis

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