A company is considering replacing one of the old machines used in the manufacturing process. The machine was purchased 2 years ago for $600 000. This machine s being depreciated on a straight-line basis, and it has 4 years of remaining life. When this machine was purchased 2 years ago, it was assumed to have zero sakage value at the end of its useful life of 6 years. Currently, this machine has a market value of 5250,000 The company intends to keep this old machine as spare if the replacement happens. The current revenue generated by this machine is $250,000 annually and the cost of operating the machine is $175,000 annually The replacement machine will cost of $850,000 and $50,000 for shipping and transportation to the company's location The new machine falls into 3-year MACRS (33 45% 15% and 7%). The replacement machine would permitan output expansion, so sales will become S4500 per year Even so the new machine's great efficiency would cause operating expenses to become $95,000 per year. The new machine would require inventones be increased by $63.uaccounts would simultaneously increase by $10,000. The replacement project life is 4 years. The new machine can be sold at the end of the project's life for s machine will not have any value at the end of the 4th year. The company's marginal federal Isstate tax rate is 40% and s cost a c ta s company replace the old machine? What is the initial investment CFO? -1,450,000 1,150,000 -1,750,000 1,265,000 1.385,000