2. Assume that a machine costs 80,000, it has a maximum life of 4 years, but it may be replaced earlier if needed. The cost of capital is 10% per year. Further, the scrap (salvage) value will be: 25,000 after 1 year 10,000 after 2 years 5,000 after 3 years; and zero after 4 years The demand for the product manufactured on machine is expected to be 20,000 units per annum and demand will last forever. The machinery's output and maintenance costs will be: Fixed costs, excluding depreciation will be 5,000 per annum. Further, the selling price will be 8 per unit, the variable costs of production will be 5 per unit; thus, contribution will be 3 per unit. Examine when the machine should be replaced using the NPV and EACF approaches