Only solve 11.28

1128 Rework Problem 11.13 with the following additional information: The current book value of the old machine is $7,809. The anticipated book values for the next four years are as follows: year one: $5.578; year two: $3,347; year three: $1,116; and year four: $0. The new machine will be depreciated under a seven-year MACRS class. The company's marginal tax rate is 35%, and the firm uses an after-tax MARR of 10%