BLW Corporation has a machine having an additional life of 5 years which costs $10,00,000 and has a book value of $4,00,000. A new machine costing $20,00,000 is available. Though its capacity is the same as that of the old machine, it will mean a saving in variable costs to the extent of $7,00,000 per annum. The life of the machine will be 5 years at the end of which it will have a scrap value of $2,00,000. The rate of income-tax is 40% and BLW Corporation's policy is not to make an investment if the yield is less than 12% per annum. The old machine, if sold today, will realise $1,00,000; it will have no salvage value if sold at the end of 5th year. Calculate the NPV of new machine. Capital gain is tax free. Ignore income-tax saving on additional depreciation as well as on loss due to sale of existing machine