Delta Corp is using a machine that originally cost $66,000. As of the current month, the tax book value is $ 10,000, and a current market value of $40,000.

The replacement newer model will be costing $75,000,000. The new machine will cut operating costs by $10,000 each year for the next five years. Additional working capital required for the new replacement will be $8,000. Delta's cost of capital is 8%.

Required

Should the firm replace the asset?