The Zhang Equipment Companys machine was purchased 5 years ago for $55,000. It had an expected life of 10 years when it was bought, and its remaining depreciation is $5,500 per year for each year of its remaining life. As older machine are robust and useful machine, this one can be sold for $20,000 at the end of its useful life.

A new high-efficiency, digital-controlled machine can be purchased for $120,000, including installation costs. During its 5-year life, it will reduce cash operating expenses by $30,000 per year. Sales revenue will not be affected. At the end of its useful life, the highefficiency machine is estimated to be sold at $10,000. MACRS depreciation will be used, and the machine will be depreciated over its 5-year property class life.

The old machine can be sold today for $35,000. The firms tax rate is 25%, and the appropriate cost of capital is 13%.

- Perform sensitivity analysis for WACC, cost saving, and salvage value of the new machine with their values change at increasing and decreasing of 10%, 20% and 30%. Which variable is more dangerous? Please explain through graph. Datatable is required to get credit for this problem.