2. Marigold Outfitters wishes to expand and upgrade its existing facilities. The installed cost of a proposed new industrial fabric-cutting machine is $29,000. The firm has a chance to sell its current 4-year old machine for $4,200. The existing machine originally cost $17,000 and is being depreciated as a MACRS 7-year recovery class asset. Marigold is subject to a 25% tax rate. a. What is the book value of the existing machine? b. Calculate the change in net working capital that the new fabric cutter would generate versus the existing machine assuming the following anticipated changes in current assets and current liabilities: Inventories = - $6,000 Accruals = + $3,000 Accounts payable - $1,000 Cash = + $1,000 Accounts receivable = +$ 4,000 Calculate the net investment of the new fabric cutter