a 5-year resonery period If machine should roduce operating costs by $355,000 per yeat. The now machine wil be depreciated under MACRS issing a 5 -year recovery period. The nes machine can be sold for 5193 , oo0 net of removal and Ceanup costs at the end of 5 years. An increased investment in net working capial of $28,000 wit be necoded to support operations it the new machine is accuired. Assume that the firm has adequate coperaing incorve against which to doduct any loss experienoed on the swle of the existing machine. The fem has a 9.3% cost of caphal and is sitelect to a 40 st lax rate a. Develop the net cash flows nooded to analyze the proposed teplacement. b. Detorivine the net present value (NPV) of the proposal. c. Determine the internal rate of retum (IRR) of the proposal d. Make a recommendavion to accept of reject the replacement proposal, and juste your answor e. What is the highesicous of cantar that the firm could havo and atili accopt the groposalt Data table (Cick on the icon localed on the top tight comer of the data table below in order to copy ts corlients into a spenodsheot) Rounded Depreciation Percentages by Recovery Year Using MacRS tor First Four Property Classes