The company will need to do replacement andiysis to determine which option is the best financial decision for the company. Lofvus50 Co. is considering replacing an existing piece of equipment: The project involves the following: - The new equipment will have a cost of $9,000,000, and it will be depreciated on a stralght-line basis over a period of soc years (years 1-6). - The old machine is also being depreciated on a straight-line basis. It has a book value of $200,000 (at year 0) and four more years of deprecation left ($50,000 per year) - The new equipment wur have a salvage value of $0 at the end of the project's life (year 6 ). The old machine has a current salvage value (at year 0 ) of $300,000. - Reolacing the old machine will require an investment in net operating working capital (NoWC) of 500,000 that will be recovered at the end of the project's life (year 6). - The new machine is more efficient, so the firm's incremental earnings before interest and taxes (FBIT) will incraash by a total of 4600,000 in each of the next six years (years 1-6). Hint this yaloe represents the difference between the revenues and operating cotts (including depreciation expense) generated wing the new oquipment and that eamed using the old equiprrent. - The project's cost of capital is 134. - The compary's annual tax tate is 304m. The net present value (WDW) of this reblacement project is: The net present value (NPV) of this replacement project is: $1,481,531 $1,049,418. $1,234,609. $1,419,800