10. ABCCO. is considering replacing an old power generator with a new one. The old one was purchased 4 years ago for $400,000. It is depreciated straight-line to zero over its 10-year life. It is expected to worth $20,000 at the end of its 10 -year life. If ABC sells it today, ABC should receive $200,000 for the generator. The new generator costs $600,000. It has a life of 6 years and will be depreciated straight-line to zero over its 6-year life. It is expected to be worth $80,000 at the end of its 6-year life. The new generator is expected to reduce the operating costs by $100,000 per year. There is no change in net working capital. The discount rate of this replacement project is 15%, and the tax rate is 35%