Please help me answe this step by step with explanations on why you do each step. Thank you.

TubeFab Inc. is considering replacing its metal tubing machine acquired 2 years ago at a cost of $50,000. This machine is still in good condition but management wants more exibility and lower manufacturing costs. The actual current market value of the machine is $20,500, with a salvage value of $2,000 in 10 years. A manufacturer is offering a new metal tubing machine at a price of $60,000. The machine would last 10 years and has an expected salvage value of $4,000. The new machine will require an additional $5,000 in working capital, which will be recovered at the end of the 10th year. With the new machine, management estimates an important decrease in the manufacturing costs: Old Tubing Machine New Tubing Machine Annual expenses: Direct labour S 13,500 '36 L900 Machinery costs 3,000 3,400 Cleaning 3: setup 2,500 1,200 Amortization 4,000 5,600 Annual production (in units) 500,000 500,000 TubeF ab has a minimum desired rate of return of 8% and a cutoff period of 4 years in evaluating the new project Required: A. What is the net present value of this machine? H. Calculate the point of indifference in terms of annual cost savings (or cash ow). c. What is the payback period? 0. What is the accrual accounting rate of return (AARR)? 1:. Based on your calculations above, state your conclusion on whether the new tubing machine should be purchased. Please briey comment on quantitative measures and qualitative issues