3. Tango Industries is considering replacing a fully depreciated machine that has a remaining useful life of 10 years with a newer, more sophisticated machine. The new machine will cost $210,000 and will require $30,700 in installation costs. It will be depreciated under MACRS using a 5-year recovery period. A $25,000 increase in net working capital will be required to support the new machine. The firm's managers plan to evaluate the potential replacement over a 4-year period. They estimate that the old machine could be sold at the end of 4 years for $15,600 before taxes; the new machine at the end of 4 years will be worth $66,000 before taxes. The firm is subject to a 25 percent tax rate. a. What is the installed cost of the new machine? b. What is the book value of the machine in 4 years? c. What is the tax on the sale of the new machine? d. Calculate the terminal cash flow at the end of year 4 that is relevant to the proposed purchase of the new machine. 4. The Render Instrument Corporation is considering replacing the wood steamer it currently uses to shape guitar sides. The steamer has 6 years of remaining life. If kept, the