the Maltpon company is considering replacing a piece of equipment that was purchased five years ago for $100,000 and is being depreciated on a straight-line basis over a ten-year life to a zero salvage value. it could be sold now for $40,000. a more efficient model is available that costs $400,000, including installation costs. it would be depreciated on a straight-line basis over its five-years life to a zero salvage value. this machine would save labor of $150,000 per year for five years. the new model would not affect the level of net working capital (NWC) required to support operations. the firm's marginal tax rate is 40 percent, and the required rate for this investment is 14 percent. (you may ignore the investment tax credit)

required (use EXCEL):

1. compute the NPV, and IRR for the replacement, and MIRR.

2. what would you recommend? why?