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(15 pts) 8. Crowder Manufacturing, Inc. is considering the replacement of an existing machine. The new machine costs $750,000 and requires installation costs of $250,000. The existing machine can be sold currently for $300,000 before taxes. It is one year old, cost $600,000 new, and has a $500,000 book value and a remaining useful life of 5 years. Depreciation expense on the existing machine is $100,000 per year. Over its 5-year life, the new machine should reduce operating costs by $300,000 per year. The new machine will be depreciated on a straight- line basis to a zero salvage value over its 5-year life. The new machine can be sold for $100,000 net of removal and cleanup costs at the end of 5 years. An increased investment in net working capital of $100,000 will be needed to support operations if the new machine is acquired. The firm has a 16% cost of capital and is subject to a 25% tax rate. Should Crowder replace the existing machine? Show computations. (16 pts) 9. Robinson Enterprises is considering whether to pursue an aggressive or conservative current asset investment policy. The firm's annual sales are $4,000,000; its fixed assets are $2,000,000; debt and equity are each 50% of total assets. EBIT is $400,000, the interest rate on the firm's debt is 10%, and the firm's tax rate is 30%. With an aggressive policy, current assets will be 20% of sales. Under a conservative policy, current assets will be 60% of sales. Show computations