Purple Turtle Group is a com parry that produces IGadgets, among several other products. Suppose that Purple Turtle Group considers replacing its old machine used to make IGadgets with a more efficient, one, which would cost $1, 800 and require $250 annually In operating costs except depredation. After-tax salvage value of the old machine is $600, while its annual operating costs except depredation are $1, 100. Assume that, regardless of the age of the equipment, Purple Turtle Group's sales revenues are fixed at $3, 500 and depredation on the old machine is $600. Assume also that the tax rate is 40% and the project's risk-adjusted cost of capital, r, is the same as weighted average cost of capital (WACC) and equals 10%. Based on the data, net cash flows (NCPs) before replacement are years and they are constant over four years. Although Purple Turtle Group's NCF5 before replacement are the same over the 4-year period, its NCFS after replacement vary annually. The following table shows depredation rates over four years. Complete the following table and calculate incremental cash flows in each year. Next evaluate the incremental flows by calculating the net present value (NPV), the Internal rate of return (IRR), and the modified IRR (MIRR). Assume again that the cost of financing the new project is the same as the WACC and equals 10%. Based on the evaluation, replacing the old equipment appears to be a derision because