Alternative 2Replace the existing machine with a new machine costing $100,000 and requiring installation costs of $10,000. The new machine would have a 5-year usable life and be depreciated under straight line using a 5-year recovery period. The firms projected revenues and expenses (excluding depreciation), if it acquires the machine, would be as follows: Year Revenue Expenses(excluding depreciation) 1 $1,000,000 $767,500 2 $1,175,000 $844,,800 3 $1,300,000 $917,900 4 $1,425,000 $994,900 5 $1,550,000 $995,,900 The new machine would result in an increased investment of $22,000 in net working capital. At the end of 5 years, the new machine could be sold to net $25,000 before taxes. The weighted average cost of capital is 12%. The marginal tax rate for Newman is 30%. Find the NPV, IRR, MIRR, payback and discounted payback for both alternatives. Which alternative should be selected? Explain. Straight line depreciation using a 5-year life with half year convention Year % 1 10% 2 20 3 20 4 20 5 20 6 10