Pilot Plus Pens is deciding when to replace its old machine. The machine's current salvage value is $2.8 million. Its current book value is $1.6 million. . If not sold, the old machine will require maintenance costs of $855000 at the end of the year for the next five years. Depreciations on the old machine is $320000 per years. At the end of five years, it will have a salvage value of $140000 and a book value of 0. A replacement machine costs $4.5 million now and requires maintenance costs of $350000 at the end of each year during its economic life of five years. At the end of the five years, the new machine will have a salvage value of $90000. It will be fully depreciated by the straight line method. In five years a replacement machine will cost $4500000. The company will need to purchase this machine regardless of what choice it makes today. The corporate tax rate is 40% and the approapriate discount rate is 8%. The company is assumed to earn sufficient revenues to generate tax shields from depreciation. Should the company replace the old machine now or at the end of five years?