Bupe Ltd purchased a machine 5 years ago at a cost of US$7.5million. The machine had an expected life of 15 years at the time of purchase and a zero estimated salvage value at the end of 15 years. It is being depreciated on a straight line basis and has a book value of US$5 million at present. The manager reports that for US$12 million, a new machine can be bought which, over its 10 year life, will expand sales from US$1million to US$1.1million a year. Further, it will reduce labour and raw materials usage sufficiently to cut operating costs from US$7 million to US$5 million. The old machines current market value is US$1 million. Taxes are at 35 percent and the firms cost of capital is 15 percent. Should Bupe buy the new machine?