A firm' management is planning to replace an old machinewith a three year remaining life and $5,000 per year depreciation by a new machine. The new machine costs $27,000. The depreciation expense on the new machine would be $9,000 per year. By using the new machine, expenses (excluding depreciation) will reduce from $55,000 to 40,000 per year. Assume a tax rate of 40 percent. What are OCF of each alternative (old-new machine)? What are relevant cashflows? (Assume that the change in the machine does not affect existing revenue of $100,000).