Melloni, Inc., is considering replacing a piece of equipment with a book value of $8,000 with one that costs $5,000,000. The current machinery can be sold for $50,000. The new machine will improve efficiency, resulting in cost savings of $1,000,000 each year for the 10-year life of the equipment, which is expected to have no salvage value at the end of its life. Melloni has a tax rate of 35% and a required rate of return of 11%. valsts a. Calculate the net present value of the equipment replacement. b. From a financial perspective, should Melloni replace the equipment? c. What is the payback period of the equipment replacement? d. What range does the internal rate of return for the project fall into?