Kompany X is considering replacing an existing machine with a new machine which costs $5,000. This replacement is expected to bring a pre-tax profit increase of $ 2,000 in first year, $ 2,500 in the second year and $3,000 in the third year. The new machine will be depreciated according to MACRS with 33%, 45% and 15%. Also, the purchase of new machinery will be accompanied by an increase in accounts receivable by $ 2,000 and accounts payable by $ 3,000 and with an inventory drop of $ 1,000. At the end of her three-year life she can recover a value of $ 900. Meanwhile, the old machinery was purchased four years ago for $4,000 and will be used for another 3 years. It can be sold today for $1,500, but there will be no market value after this moment. It is depreciated according to linear depreciation with $ 500 per year. If the tax rate is 20% and the cost of the company's capital is 12%, argue whether replacement should be made using the net present value method