The KRAY Inc. is considering the replacement of an existing machine. The new machine costs $220,000 and requires $15,000 in setup costs and $35,000 in additional net working capital. The new machine's useful life is 10 years after which it can be sold for $25,000. KRAY uses straight-line depreciation and the machine will be depreciated to a book value of zero on a 5 -year basis. KRAY has a tax rate of 35% and a 14% cost of capital (discount rate). The new machine is expected to increase revenues minus expenses by $55,000 per year. Find the following. a. The initial investment 220 pur +15,0000+35,000=270,000 b. The after-tax cash flows c. The net salvage value 25,000.35(25,000.0)+55,00=51,250 d. The NPV of replacing the machine e. Should the replacement take place