One year ago, ABC Ltd purchased a machine for ₹600,000. The machine was expected to produce a gross margin of ₹120,000 per year and was assumed to have an economic life of six years. 

The company now finds that a new machine is available that may offer significant advantages. The new machine can be purchased for ₹800,000, has an economic life of five years, and has no salvage value. It is expected that the new machine will produce a gross margin of ₹220,000 per year. The old machine can be sold now for ₹400,000. ABC Ltd’s tax rate is 30 per cent. 

At 10 per cent COC, should ABC Ltd replace the old machine?