The C. DC. Corporation is considering replacing one of its machines with a new, more efficient machine. The old machine presently has a book value of $100,000 and could be sold for $60,000. The old machine is being depreciated on a simplified straight line basis down to a salvage value of zero over the next five years, generating depreciation of $20,000 per year. The replacement machine would cost $300,000 and have an expected life of five years, after which it could be sold for $50,000. Because of reductions in defects and material savings, the new machine would produce cash benefits of $90,000 per year before depreciation and taxes. Assuming simplified straight line depreciation, and that the replacement machine is being depreciated down to zero for tax purposes even though it can be sold at termination for $50,000, a 34% marginal tax rate, and a required rate of return of 15%. a) What is the initial net cash flow in year 0? b) What is the yearly net cash flows from year 1 to year 4? c) What is the net cash flows in year 5? d) What is the NPV of the project? e) What is the IRR of the project in %? f) Should the firm invest in this project (Answer Yes or No)