6. Pilot Plus Pens is considering when to replace its old machine. The replacement costs $3 million now and requires maintenance costs of $750,000 at the end of each year during the machine's economic life of five years. At the end of five years the new machine would have a resale value of $100,000. It will be fully depreciated (to zero after five years) by the straight-line method. The corporate tax rate is 34% and the appropriate discount rate is 12%. Maintenance cost, resale value, depreciation and year-end book value of the existing machine are given as follows. Year Maintenance Depreciation Book Value Resale 0 1,000,000 1,600,000 1 1,000,000 200,000 800,000 1,200,000 2 1,000,000 200,000 600,000 600,000 When should the company replace the machine (now, in one year, or in two years)