A high-tech machine that produces watch bands costs $849,000. This cost could be depreciated at 30% per year (CCA Class 10). The machine would be worth $175,000 in five years. There are no capital gains to worry about. The new machine would save the firm $262,000 per year before taxes in operating costs. There is no impact on net working capital. The firm's WACC is 15% and the corporate tax rate is 40% 3. What is the total present value of the after-tax operating cost savings that the machine will bring? A) $786,148 B) $878,265 C) $606,003 D) $611,453 E) $526,959 4 Pretend that your answer to the previous question is $600,000. What would be the NPV of purchasing this system? A) $37,892 B) $26,439 C) $304,704 D) $32,442 E) $71,124