Problem 3: Johnson and Johnson currently has a machine that has five years of useful life remaining. Its current net book value is 550,000, and it is being straightline depreciated to its expected zero salvage value in five years. It generates $60,000 per year in sales revenue, requiring $30,000 in operating expenses, excluding depreciation. If the firm sells the machine now, it could get $30,000 for it. The firm is considering buying a new machine to replace this one. The new machine will have a useful life of five years and will be straightline depreciated to its expected salvage value of $5,000. It costs $65,000. It is also expected to generate 560,000 per year in sales revenue (i.e. no change in revenue), but will require only $20,000 in operating expenses, excluding depreciation. The project's WACC is 10% and the relevant tax rate is 35%. Should Johnson and Johnson replace the old machine