Splish inc. wants to replace its current equipment with new high-techequipment. The existing equipment was purchased 5 years ago at a cost of $126,000. At that time, the equipment had an expected life of 10 years, with no expected salvage value. The equipment is being depreciated on a straight-line basis. Currently, the market value of the old equipment is $44,200. The new equipment can be bought for $174,010, including installation. Over its 10 -year life, it will reduce operating expenses from $192,300 to $146,600 for the first six years, and from $204,900 to $193,500 for the last four years. Net working capital requirements witl also increase by $21,000 at the time of replacement. It is estimated that the company can sell the new equipment for $24,400 at the end of its life. Since the new equipment's cash flows are relatively certain, the project's cost of capital is set at 10%, compared with 15% for an average-risk project. The firm's maximum acceptable payback period is 5 years. Click here to view the factor table