Question 3 This question is similar to question 2, but annual revenue is given and sale value is unknown: Suppose you have to decide whether sell an old machine or keep it with a major overhaul. You can: A Sell the machine at time zero for X dollars with zero book value and paying the tax of 40%. B) Keep the machine, which requires a major overhaul cost ofSI,000,000 at time zero. The overhaul cost is depreciable from time o ar 6 (over six years) based on MACRS 7-year life depreciation with the half year convention (lable A-1at IRS). In this case machine can produce and generate equal annual revenue of dollars for six years (year l to 6) and salvage value of the machine will be $200,000 400,000 with zero book value at the end of year 6. The operating cost ofthe machine will be S80,000 per year from year to year 6. Calculate the sale value, X, that can break-even the NPV ofkeeping the machine. Consider 40% income tax rate and after-tax minimum ROR of8%