ii) Compute the NPV and IRR of the project for project acceptance at 10% hurdle 5. The Nobel Dynamite Company is considering a new packing machine. The existing packing machine cost Rs 500,000 five years ago and is being depreciated @ 20% using WDV over a 10-year life. Nobel's management estimates that the old machine can be sold for Rs 100,000. The new machine costs Rs 600,000 and would be depreciated @ 40% over five years using WDV. There is no salvage value for the new machine. The new machine is more efficient and would reduce packing expenses (damaged goods) by Rs 120,000 per year for the next five years. The marginal tax rate is 30%. Compute the following: i) Net incremental cash flows for the project ii) Compute the NPV and IRR of the project for project acceptance at 10% hurdle