Suppose we are thinking about replacing an old computer with a new one. The old one cost us $1,300,000; the new one will cost, $1,560,000. The new machine will be depreciated straight-line to zero over its five-year life. It will probably be worth about S300,000 after five years. The old computer is being depreciated at a rate of S260,000 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 $420,000; in two years, it will probably be worth $120,000. The new machine will save us $290,000 per year in operating costs. The tax rate is 38 percent, and the discount rate is 12 percent. a-1 Calculate the EAC for old and new computer. (Negative amounts should be indicated by a minus sign. Do not round intermediate calculations and round your final answers to 2 decimal places. (e.g., 32.16)) EAC New computer $ Old computer $ a-2 What is the NPV of the decision to replace the computer now? (Negative amounts should be indicated by a minus sign. Do not round intermediate calculations and round your final answer to 2 decimal places. (e.g., 32.16)) NPV $ Suppose we are thinking about replacing an old computer with a new one. The old one cost us $1,300,000; the new one will cost, $1,560,000. The new machine will be depreciated straight-line to zero over its five-year life. It will probably be worth about S300,000 after five years. The old computer is being depreciated at a rate of S260,000 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 $420,000; in two years, it will probably be worth $120,000. The new machine will save us $290,000 per year in operating costs. The tax rate is 38 percent, and the discount rate is 12 percent. a-1 Calculate the EAC for old and new computer. (Negative amounts should be indicated by a minus sign. Do not round intermediate calculations and round your final answers to 2 decimal places. (e.g., 32.16)) EAC New computer $ Old computer $ a-2 What is the NPV of the decision to replace the computer now? (Negative amounts should be indicated by a minus sign. Do not round intermediate calculations and round your final answer to 2 decimal places. (e.g., 32.16)) NPV $