Suppose we are thinking about replacing an old computer with a

new one. The old one cost us $$1,330,000$; the new one will cost

$$1,590,000.$ The new machine will be depreciated straight$-$line to

zero over its five$-$year life. It will probably be worth about

$$330,000$ after five years.$$The old computer is being depreciated at a rate of $$266,000$ per

year. It will be completely written off in three years. If we don$$t

replace it now, we will have to replace it in two years. We can

sell it now for $$450,000$; in two years, it will probably be worth

$$123,000.$ The new machine will save us $$293,000$ per year in

operating costs. The tax rate is $23$ percent$$and the discount

rate is $12$ percent.$$Calculate the EAC for the old computer and the new

computer.$($A negative answer should be indicated by a

minus sign.$$Do not round intermediate

calculations and round your answers to $2$ decimal places, e$.$g$.,$

$32\mathrm{.}16.)$

$$What is the NPV of the decision to replace the computer

now?$($A negative answer should be indicated by a minus

sign.$$Do not round intermediate calculations

and round your answer to $2$ decimal places, e$.$g$.,$

$32\mathrm{.}16.)$

$$