Micah Corporation is trying to determine the initial investment required to replace an old machine with a new one. The new machine costs $61000. It will be depreciated under MACRS, using a 5-year recovery period. The 5-year MACRS depreciation rates are: Year 1 2 3 4 5 6 Depreciation 20% 32% 19% 12% 12% 596 The old machine was purchased 3 years ago at a cost of $48000 and was being depreciated under MACRS, using a 5-year recovery period. The firm can sell the old machine for $26000. The firm expects that a $15000 increase in current assets and an $5700 increase in current liabilities will accompany the replacement. The firm's tax rate is 21%. The new machine and the old machine are associated with the following EBITDA (earnings before interest, taxes, depreciation and amortization) over the 5-year life of the project: Year 1 2 3 4 5 115000 115000 115000 115000 115000 New machine's EBITDA 83000 83000 83000 83000 83000 Old machine's EBITDA Assume that the firm expects to liquidate the new machine at the end of its 5-year usable life, to net $15000 after paying removal and cleanup costs. Had the new machine not replaced the old machine, the old machine would have been liquidated after 5 years to net $5000. The firm expects to recover its net working capital investment upon termination of the project. If the corporation's capital structure is 50% debt and the rest of capital is equity, and the corporation will continue this capital structure to fund the investment on the new machine. Its cost of debt is 6.33% and cost of equity is 15%. What is the NPV if Micah decides to do the replacement (when calculating WACC, please keep two decimal places for the percentage such as 15.38%)? WACC, please keep two decimal places for the percentage such as 15.38%)? Hints 1. You may need the following equations: FCF=EBIT (1-T)+DP-net CAPX-ANWC WACC wdxrd (1-T)+w, xrs After-tax salvage value-MV-(MV-BV) *T Excel function of NPV 2. It is a replacement decision and you need to consider the effect of the new machine relative to that of the old one. Your