ABC company is considering replacing their old manual loading machine with an automatic loading machine. The manual machine cost $300,000 three years ago, and is being depreciated over 10 years straight line depreciation, with no salvage value. If ABC replaces the manual machine, the new automatic machine will cost $480,000 and have a useful life of 12 years. This will also be depreciated on a straight line basis to zero. As a result of this new machine, there will be pretax savings of $135,000 in labour costs and $25,000 in other cash expenses annually. If the automatic machine is purchased, the old machine will immediately be sold at a price of $280,000. The company has already spent $15,000 researching the costs associated with this decision. The company's tax rate is 40% and no inflation is expected. The company's cost of capital is 7%. Required: a) Calculate the after tax cashflows over the investment horizon. (11 marks) b) Determine whether or not ABC should accept the project based on the Net Present Value of the decision. (4 marks)