experienced on the sale of the existing machine. The firm has a 9.3% cost of capital and is subject to a 40% tax rate. a. Develop the net cash flows needed to analyze the proposed replacement. a. Develop the net cash flows needed to analyze the propo b. Determine the net present value (NPV) of the proposal. c. Determine the internal rate of return (IRR) of the proposal. d. Make a recommendation to accept or reject the replacement proposal, and justify your answer. e. What is the highest cost of capital that the firm could have and still accept the proposal? Calculate the operating cash flows from the existing machine: (Round to the nearest dollar.) "I hese percentages have been rounded to the nearest whole percent to simplity calculations while retaining realism. To calculate the actual depreciation for tax purposes, be sure to apply the actual unrounded percentages or directly apply double-declining balance (200\%) depreciation using the half-year unrounded p convention