44. Signs for Fields Machinery Ltd. is considering the replacement of some technologically obsolete machinery with the purchase of a new machine for $72,000. Although the older machine has no market value, it could be expected to perform the required operation for another 10 years. The older machine has an unamortized capital cost of $27,000. The new machine with the latest in technological advances will perform essentially the same operations as the older machine but will effect cost savings of $17,500 per year in labour and materials. The new machine is also estimated to last 10 years, at which time it could be salvaged for $11,500. To install the new machine will cost $7,000. Signs for Fields has a tax rate of 30 percent, and its cost of capital is 15 percent. For accounting purposes, it uses straight- line amortization, and for tax purposes its CCA is 20 percent. a. Should Signs for Fields Machinery purchase the new machine? b. If the old machine has a current salvage value of $9,000, should Signs for Fields purchase the new machine? c. Calculate the IRR and PI for part a