Open Question 5: (10 marks) Your company is considering replacing an old machine with a new machine. The new machine will cost $1 million, will last for 5 years, and will have a salvage value of $200,000 at the end of five years. If the company replaces the old machine with the new machine, pre-tax operating costs will go down by $300,000 per year. The cost of the new machine ($1 million) will be depreciated over the 5 years life of the project using the straight line depreciation method to the $200,000 salvage value (i.e., the annual depreciation is $160,000). The old machine was purchased at a price of $800,000 five years ago, and it still has five years of useful life. It can be sold today for $200,000. However, after five years, the salvage value of the old machine will be zero. The cost of the old machine has also been depreciated using the straight line depreciation to the S0 salvage value (ie, the annual depreciation is $80,000). The company's tax rate is 40%. The WACC for the project is 6.4%. What is the NPV of replacing the old machine with the new machine, and should the firm make the replacement