You are considering replacing a machine in your factory. The current machine cost S300,000 six years ago. It is being depreciated for tax purposes on a straight-line basis over its ten-year life. The old machine can be sold today for $80,000 or you can sell it in four years for $30,000 The new machine would cost $400,000 and it would fall into the three-year MACRS classification. The MACRS three-year depreciation rates are 33%, 45%, 15%, and 7% If the new machine is purchased, it would be operated for four years and then sold for S100,000. You are considering the new machine because it would result in labor savings of $150,000 per year. If you purchase the new machine, net working capital requirements will increase by $30,000 because of the need for additional spare parts If your tax rate is 30% and your cost of capital is 10% per year, what is the net present value of purchasing the new machine? What should you do