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25 PC, Inc., has a stamping machine which is 5 years old and which is expected to last another 10 years. It has a book value of $210,000 and is being depreciated by the straight-line method to $10,000. Tri-State Industries has demonstrated a new machine with an expected useful life of 10 years (scrap value $20,000) that should save PC $70,000 a year in labor and maintenance costs. If PC's cost of capital is 10%, should the replacement be made? PC's tax rate is 40%, the new machine will cost $320,000. The market value of the old machine is $60,000 and a $20,000 increase in working capital will be needed to support the new machine. What is the Internal Rate of Return of the proposal? 17.1 percent 10.0 percent 9.5 percent 21.9 percent 33.7 percent