$$I I$\text{'}$m stuck on the $12\%$ required return rate part. We have to use the BA $2$ PLUS calculator $($no excel$)10-18$ Otter Outside Gear must decide whether to replace a $10-$year$-$old packing machine with a new one that costs $$153,800.$ Replacing the old machine will increase net operating income $($excluding depreciation$)$ from $$70,000$ to $$110,000$ and it will decrease net working capital by $$18,000.$ The new machine will be depreciated according to the MACRS $5-$year class of assets. If the new machine is purchased, it will be sold in six years for $$25,000$; whereas, if the old machine is kept, it will have no salvage value in six years. The old machine has a current market value of $$10,860,$ and although its current book value is $$8,000,$ in one year the old machine's book value will be zero $($$$0).$ The firm's marginal tax rate is $40$ percent, and its required rate of return is $12$ percent. Should the new packing machine be purchased? $$MACRS $5-$year class of assets used: Y$1=20\%,$ Y$2=32\%,$ Y$3=19\%$ Y$4=12\%,$Y$5=11\%$ Y$6=6\%$