ABC Inc. is debating the purchase of a new digital printer that will replace an older printer. The printer they acquired $6$ years ago for $$1,500,000$ is worth $$500,000$ today and will have a salvage value of $$240,000$ after $4$ more years. The printer generates revenues of $$750,000$ per year. The costs of operating the printer are $$380,000$ per year. The company currently has $$80,000$ invested in operating net working capital. The investment in operating net working capital will remain at this level for the remaining $4$ years of the project.

The new printer will cost $$2,130,000.$ It will cost $$250,000$ to install the new printer. The new printer will generate revenues of $$1,920,000$ per year. In addition, the costs of operating the new printer will be $$570,000$ per year. The company will have to increase its investment in operating net working capital to $$155,000$ at time zero. At the end of $4$ years, the new machine will have a salvage value of $$820,000.$

The company just received a report from a consulting firm where they did an analysis of replacing the old printer with a new printer. The company paid $$125,000$ for the report. The consultants recommended that the company replace the old printer with a new printer since the average accounting rate of return was $20\mathrm{.}5\%.$

The company$$s corporate tax rate is $34\%,$ the CCA rate is $40\%$ and the required rate of return $($cost of capital$)$ is $12\%.$ Assume the asset class remains open.

Based on the NPV rule, should the company purchase the new printer? Show your work