The Hamilton Company is using an automated bench lathe that cost $ 150,000 five years ago. Its current market value is only $20,000. The old lathe hed been straight line depreciated over a ten year life to zero salvage Management can purchase the new machine at a cost of $110,000. The new machine will be depreciated over a 5 year life to zero salvage value. Expected savings from the new. machine are $ 9000 a year (before taxes) and the cost of capital is 12 %.Assume a 46 % tax rate a What is the initial investment if the old machine is replaced? b.Find the intermediate cash flows - Calculate NPV of the project. d.Should the old machine be replaced?