(15 pts) 8. Crowder Manufacturing, Inc. is considering the replacement of an existing machine. The new machine costs $750,000 and requires installation costs of $250,000. The existing machine can be sold currently for $300,000 before taxes. It is one year old, cost $600,000 new, and has a $500,000 book value and a remaining useful life of 5 years. Depreciation expense on the existing machine is $100,000 per year. Over its 5-year life, the new machine should reduce operating costs by $300,000 per year. The new machine will be depreciated on a straight- line basis to a zero salvage value over its 5-year life. The new machine can be sold for $100,000 net of removal and cleanup costs at the end of 5 years. An increased investment in net working capital of $100,000 will be needed to support operations if the new machine is acquired. The firm has a 16% cost of capital and is subject to a 25% tax rate. Should Crowder replace the existing machine? Show computations