The Sumitomo Chemical Corporation is considering replacing a 5-year-old machine that originally cost $50,000 and can be sold for $60,000. This machine is totally depreciated. The replacement machine would cost $125,000, and have a 5-year expected life over which would be depreciated down the straight-line method and have no salvage value at five years. The new machine would the end of produce savings before depreciation and taxes of $45,000 per a percent marginal rate and a required return year. Assuming a 34 percent marginal tax rate and a required return of 10%, calculate: (a) The internal rate of return and the net present value (b) Assume now that the machine to be replaced is not totally depreciated. This machine presently has a book value of $25,000 and is being currently depreciated using the straight-line method down to a terminal value of zero over the next five years. If the rest of the variables involved in the problem do not vary, what is now the net present value of substituting the machine