Question 5 The Blue Corporation is purchasing a new soap machine for $15,400. Its annual output will bring in $3, more revenue than the old machine it is replacing. The old machine has no salvage value: nor will the new machine at the end of its seven-year estimated useful life. The new machine costs $1,000 less per year to operate than did the old machine. The income tax rate is 50 percent. {a} Will the new machine have a positive net present value if the minimum acceptable rate of return is 14 percent per vear compounded annuallv'? {Factor = 4.2331