The Slicehookshank Company$$s golf ball machine was purchased $5$ years ago

for $$550,000.$ It had an expected life of $10$ years when purchased and was

being depreciated at $$55,000$ per year. It is estimated that the salvage

value of the machine is $$200,000$ after its useful life. A new high$-$

efficiency, digitally controlled machine can be purchased for $$1,000,000.$

It will cost $$200,000$ to ship and install the new machine. During its $5-$

year life it will reduce operating expenses by $$300,000$ per year but have no

impact on sales. It is estimated that the new machine will have no salvage

value and it will be depreciated using the $3-$year MACRS class of $33\mathrm{.}33\%,$

$44\mathrm{.}45\%,14\mathrm{.}81\%$ and $7\mathrm{.}41\%.$ The old machine can be sold today for $$350,000.$

The applicable tax rate is $25\%$ and the WACC is $15\%.$

Should Slicehookshank purchase the new machine or keep operating with the

old one?