A firm is considering an investment in a new machine with a price of USD35 million to replace its existing machine.The current machine has a book value of EUR 14 million and a market value of EUR 12 million.The new machine is expected to have a 7 year life and the old machine has 7 years left in which it can be used.If the firm replaces the old machine with the new machine,sales and operating costs are expected to increase by EUR 10 million and EUR 4 million over the next seven years,respectively.The existing and new machines salvage values are USD500.000 and USD 1 million,respectively ,at the end of their lives.If the firm purchases the new machine,it also will need an investment of EUR750.000 in net working capital which is expected to be recovered after 7years.The required return on the investment is 11% and the tax rate is 20%.The company uses straight-line depreciation.Should the firm replace the existing machine with the new? What are the NPV and IRR of the decision to replace the old machine