First-Rate Cleaners is considering replacing one of its tired cleaning machines for a new model that can dry-clean clothes in half the time of the old machine. Both the book value and the salvage value of the current machine are $2,500; the current machine would be sold if the new machine is purchased. The new machine would cost $20,000 and is expected to last 15 years, at which point it would be sold for its salvage value of $2,000. It would generate additional net operating cash flows of $4,500 each year of its useful life. First-Rate Cleaners estimates its tax rate to be 25%, while its required rate of return is 8%.Item Cash Flow (B) When? (C) Tax Rate (D) PV Factor (E) Present Value (B x D x E) Old asset salvage $2,500 Year O n/a n/a $2,500.00 Purchase of new asset (20,000) Years O n/a n/a (20,000) Annual operating cash flows 4,500 Years 1-15 0.75 8.55948 28,888.25 Depreciation tax shield 1,200 Year 1-15 0.25 8.55948 2,567.84 New asset salvage 2,000 Year 15 n/a* 0.31524 $630.48 NPV = $14,587.57(b2) Provide both quantitative and qualitative reasons for your conclusion of purchasing the machine