(22 pts) 7. Rothstein Corporation currently processes seafood with a machine it purchased several years ago. The machine, which originally cost $1,000,000, currently has a book value of $500,000. Robinson is considering replacing the machine with a newer, more efficient one. The new machine will cost $1,300,000 and will require an additional $200,000 for delivery and installation. The new machine will also require Rothstein to increase its investment in receivables and inventory by S500,000. The new machine will be depreciated on a straight-line basis over five years to a zero balance. Rothstein expects to sell the existing machine for $200,000. Rothstein's marginal tax rate is 25 percent and the required rate of return for Rothstein is 10 percent. If Rothstein purchases the new machine, annual revenues are expected to increase by $250,000 and annual operating costs (exclusive of depreciation) are expected to decrease by $100,000. Annual revenue and operating costs are expected to remain constant at this new level over the five-year life of the project. After five years, the new machine will be completely depreciated and is expected to be sold for $300,000. (Assume that the existing unit is being depreciated at a rate of $100,000 per year.) Required: a) Determine the net present value of the project. b) Determine the payback period of the project. c) Determine the internal rate of return of the project. d) Do you recommend that the project be undertaken? Explain