Your firm is currently evaluating the purchase of a new machine called a Haley Special. The Special will replace your existing machine, which has 3 years left of its 6-year useful life. The existing machine has been depreciated using straight-line depreciation and initially cost $180,000. The existing machine has a market value of $110,000. The Special will cost $330,000 with an additional installation charge of $30,000 and will be depreciated using the 5 year MACRS property class convention. Two workers will have to be trained on this machine at a cost of $5,000 each. The special will require the use of an adjacent warehouse, due to the increase in production. This warehouse is currently being leased to a firm for $35,000 on an annual basis. There is a $5,000 annual maintenance cost associated with this facility that will be paid whether the warehouse is leased or the Special is purchased. The Special will generate an extra pre-tax profit of $225,000 per year over its useful life. The Special will require additional inputs; therefore, accounts payable is estimated to increase by $150,000. Since the Special will increase production, inventory is expected to increase by $300,000 and accounts receivable is expected to increase by $100,000. After 3 years, a new technology will be available, which will involve more automated processes and less human capital. At this time the Special will be sold for $220,000 with cleanup costs estimated to be $30,000. The tax rate is 34%. The firm issued 20 year bonds five years ago that have an 8% semiannual coupon. The bonds currently sell for $1025.89. The outstanding bonds have a market value of $1.9 million. The firms common stock currently sells for $42.67 and just paid a dividend of $3.85. There are 58,500 shares outstanding. The dividend is expected to grow at a rate of 4%. The current market risk premium is 7% and the risk free rate is 6%. The firms common stock has an associated beta of 1.2. Should the machine be purchased? Calculate NPV and IRR.