10-14 Otter Outside Gear must decide whether to replace a 10 year old packing machine with a new one that costs. $142,600. Replacing the old machine will increase net operating income (excluding depreciation) from $75,000 to $105,000. It will decrease NWC by $16,000. The new machine falls in the MACRS 5-year class. If the new machine is purchased, it will be sold in six years for $20,000; whereas, if the old machine is kept, it will have no salvage value in six years. The old machine has a current market value of $7,260, and although its current book value is $6000, in one year the old machine's book value will be zero. The firm's marginal tax rate is 35%, and its required rate of return is 10%. Should the new packing machine be purchased? Use NPV, IRR and MIRR to make your decision.