You are considering replacing your current computer system with a newer one. The old computer system cost $1M to build nine years ago and is being depreciated on a straight- line basis over ten years. If replaced, we would sell the system for $30K immediately. The new system would increase productivity and save 200K/year in labor costs. The system would require an investment of $1.5M and be depreciated over ten years (straight- line). The company tax rate is 30%. No additional working capital would be required but training on the new system would cost $70K. At the end of ten years we expect that the machine could be sold for 80K. What is the NPV of this investment assuming a cost of capital of 12%