8.8 Comprehensive Capital Budgeting Decision. The Chellin Company purchased a special machine 1 year ago at a cost of $12,000. At that time the machine was estimated to have a useful life of 6 years and no salvage value. The annual cash operating cost is approximately $20,000. A new machine has just come on the market which will do the same job but with an annual cash operating cost of only $17,000. This new machine costs $21,000 and has an estimated life of 5 years with zero salvage value. The old machine can be sold for $10,000 to a scrap dealer. Straight- line depreciation is used, and the company's income tax rate is 40 percent Assuming a cost of capital of 8 percent after taxes, calculate: (a) the initial investment; (b) the incremental cash inflow after taxes; (c) the NPV of the new investment; and (d) the IRR on the new investment