The CFO of Black Corporation asked you to evaluate a capital budgeting proposal. The firm intends to replace a machine with one that offers more production capacity. The unit manager believes that replacing an old machine with a new one will produce total benefits of $1,200,000 over the next 5 years. The existing machine (old one) produce benefits of $750,000 over the same period. An initial cash investment of $650,000 would be required to install the new machine. Also, the manager estimates that the existing (old) machine can be sold at a price of $300,000. Required: Apply the Principle of Marginal Cost-Benefit Analysis techniques to answer the following: A. Compute the added marginal benefits for the proposed new machine

B. Compute the marginal added costs of the proposed new machine.

C. Compute the Net Benefit of the proposed new machine.

D. What should you recommend the company to do? Why?