5. Net Present Value. considering to replace an old machine. At the beginning of 2017, Salvatore Corporation is The old mochine is fully depreciated but can still be used for five more Pears, that is, through 2021. If replaced. it can be sold for P50.000 on the replacement date. The new machine has a purchase price of P1 million. The use of the new mochine will result in greater operating efficiency and will cause annual Cosh sovings in operating costs of P320,000 through 2021, the end of its expected useful ife. Both machines will have no salvage value at the end of 2021. Salvatore Corporation requires all investments to earn a 10% after-tax rate of return to be accepted. It is subject to a 32% income tax rate. The new machine will be depreciated on a straight-ine basis over a period of five years, from 2017 to 2021. Information on present value factors for some rates is as follows: 8% 0.926 0.857 Present Value of Pl 10% 0.909 0.826 12% 0.893 0.797 14% 0.877 0.769 End of Period 2 3 0.794 0.735 0.681 0.751 0.712 0.675 0.636 0.567 0.683 0.621 0.592 0.519 5 Present Value of Annuity of P 8% 0.926 1.783 2.577 3.312 10% 0.909 1.736 2.487 3.170 3.791 14% 0.877 1.647 2.322 2.914 3.6053.433 12% 0.893 1.690 2.402 3.037 Period 2 3 What is the expected nef present value of the new