Suppose we are thinking about replacing an old computer with a new one. The old one cost us $$1,660,000$; the new one will cost, $$2,001,000.$ The new machine will be depreciated straight$-$line to zero over its five$-$year life. It will probably be worth about $$435,000$ after five years.

The old computer is being depreciated at a rate of $$352,000$ per year. It will be completely written off in three years. If we don$$t replace it now, we will have to replace it in two years. We can sell it now for $$549,000$; in two years, it will probably be worth $$159,000.$ The new machine will save us $$373,000$ per year in operating costs. The tax rate is $25$ percent, and the discount rate is $12$ percent.

a$-1.$

Calculate the EAC for the the old computer and the new computer. $($A negative answer should be indicated by a minus sign. Do not round intermediate calculations and round your answers to $2$ decimal places, e$.$g$.,32\mathrm{.}16.)$

a$-2.$ What is the NPV of the decision to replace the computer now? $($A negative answer should be indicated by a minus sign. Do not round intermediate calculations and round your answer to $2$ decimal places, e$.$g$.,32\mathrm{.}16.)$