IL, I minerale cash flows and the terminal cash flow? b. What is the NPV of the replacement machine if the cost of capital is 10 percent? c. What is the NPV of the replacement machine at an 11% required rate of return? 2. Marigold Outfitters wishes to expand and upgrade its existing facilities. The installed cost of a proposed new industrial fabric-cutting machine is $29,000. The firm has a chance to sell its current 4-year old machine for $4,200. The existing machine originally cost $17,000 and is being depreciated as a MACRS 7-year recovery class asset. Marigold is subject to a 25% tax rate. a. What is the book value of the existing machine? b. Calculate the change in net working capital that the new fabric cutter would generate versus the existing machine assuming the following anticipated changes in current assets and current liabilities: Inventories Accounts payable Accounts receivable = - $6,000 = - $1,000 = +$ 4,000 Accruals Cash = + $3,000 = + $1,000 c. Calculate the net investment of the new fabric cutter