2. Your company is planning to replace the old asset with a new asset. Following provides the information of the original and new machine. Calculate the NPV and IRR if we buy the new machine and sell the old machine today. Will you accept the project? (20) Original Machine Initial cost = 100,000 Straight-line depreciation Annual depreciation=9,000 Purchased 5 years ago Salvage today - 65,000 Salvage in 5 years = 10,000 New Machine Initial cost - 160,000 5-year life Salvage in 5 years 0 Cost savings = 60,000 per year 3-year MACRS depreciation Required return -10% Tax rate -40%