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 firms WACC is 15% and the corporate tax rate is 40%. 3. 4. Pretend that the total present value of the after-tax operating cost savings 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 PLEASE SHOW ALL CALCULATIONS (in brackets if possible) ON HOW YOU GOT BOOK VALUES AND TAX SHIELDS AND SO ON. THANK YOU.