The Oviedo Company is considering the purchase of a new machine to replace an obsolete one. The machine being used for the operation has a book value and a market value of zero, However, the machine is in good working order and will last at least another 10 years. The proposed replacement machire will perform the operation so much more efficiently that Oviedo's engineers estimate that it will produce after-tax cash flows (labor savings) of s5, 000 per year. The after-tax cost of the new machine is 530,000 , and its economic life is estimated to be 10 years. It has zero salvage valuet. The firm's WAcc is 10%, and its marginal tax rate is 25%. Strould Cyiedo buy the new machine? Oviedo purchase the new machine