The managers of Price Company are considering replacing an existing piece of equipment; and have collected the following information: - The new plece of equipment will have a cost of $2,400,000, and it will be depreciated on a straight-line basis over a period of five years. - The old machine is also being depreclated on a straight-line besis. it has y book value of s200, ooo (at year 0 ) and three more years. of depreciationileft ( 550;000 per year). - The new equlpment will have a salvage value of so at the end of the project's life (year 5 ). The old machine has a current salvage value (at year 0) of 5300,000 - Replacing the old machine will requlre an investment in net working capital (NwC) of 530,000 that will be recovered at the end of the prolect is life (year 5 ) - The new machine is more efficient, so the incremental increase in operating income before taxea will increase by a cotal at 300, ogo in each of the next five wears (vears 15 ). (Hint: This value represents the dlfference between the revenues and operating costs (including depreclation expense) generated using the new equipment and that earmed using the old equipment.) - Tne project's required rate ot ceturn is 11 . - The compsey's annual cax rate is 30 bly Complete the foil wnun wie and compute the incremental cash flows associate with the replacement of the old equipment with the new cquigment. The net present valut [fipl] of this replacement project is