Problem 4 Base Show All Excel Work (10 Points) MRI Inc (MRI) manufacturers magnetic resonance imaging machines. MRI is considering a new magnet compression machine (MCM). The MCM costs $2,500,000 and will save the MRI $750,000 per year. The new machine will last 4 years. The new machine falls in the 5 -year MACRS class. The expected salvage value for the new machine at the end of the project is $125,000. The NWC will increase by $50,000. The machine to be replaced has a current salvage value of $225,000 and book value of $75,000. It is depreciated using the straight-line method to zero over the project life of 4 years. The WACC is 15 percent and the tax rate is 35 percent. Calculate the base NPV (5 Points) What is the breakeven cost savings? (5 Points) Use the Results Table to report your results. Year 0 1 2 3 4 New Equipment Old Equipment Increase NWC Sales Labor Cost Savings Dep(New) Dep (Old) Change in Dep EBT Tax NI OCF Return NWC SV (Old) SV (New) FCF Results Table NPV = Breakeven Cost Savings =