Provide your answers and show your work. 4. XYZ Co is evaluating to replace the existing two year old computers that cost $40 million with an original life of 5 years. The cost of the new computers is $90 million. The new computers will be depreciated to zero book value using straight-line over 3 years. The existing computers has a salvage value of $5 million and a book value of $24 million. The new computers will reduce operating expenses by $35 million a year. The new computers will have a salvage value of $8 million and a book value of zero in three years. a. Determine the initial cash flow of the investment. b. Determine the operating cash flows of the investment for the next three years. c. Determine the terminal cash flow of the investment. d. Should this replacement be taken (you may either use Net Present Value technique or Internal Rate of Return technique)? Explain. Use the weighted average cost of capital from question 3 when making your decision. (Note: If you do not know how to find the weighted average cost of capital, just use 10% as the cost of capital.)