Suppose we are thinking about replacing an old computer with a new one. The old one cost us $1,300,000 one year ago, the new one will cost $1,560,000. The new machine will be in CCA Class 10 (30 percent). It will probably be worth about $300,000 after five years. The old computer belongs to CCA Class 10 (30 percent). If we don't replace it now, we will have to replace it in two years. We can sell it now for $420,000; in two years, it will probably be worth $120,000. The new machine will save us $290,000 per year in maintenance costs. The tax rate is 38 percent and the discount rate is 12 percent. a-1 Calculate the EAC for old and new computer. (Negative answers should be indicated by a minus sign. Do not round your intermediate calculations. Round the final answers to 2 decimal places.) EAC New computer Old computer a-2 What is the NPV of the decision to replace the computer now? (Negative answers should be indicated by a minus sign. Do not round your intermediate calculations. Round the final answer to 2 decimal places.) NPV Suppose we are thinking about replacing an old computer with a new one. The old one cost us $1,300,000 one year ago, the new one will cost $1,560,000. The new machine will be in CCA Class 10 (30 percent). It will probably be worth about $300,000 after five years. The old computer belongs to CCA Class 10 (30 percent). If we don't replace it now, we will have to replace it in two years. We can sell it now for $420,000; in two years, it will probably be worth $120,000. The new machine will save us $290,000 per year in maintenance costs. The tax rate is 38 percent and the discount rate is 12 percent. a-1 Calculate the EAC for old and new computer. (Negative answers should be indicated by a minus sign. Do not round your intermediate calculations. Round the final answers to 2 decimal places.) EAC New computer Old computer a-2 What is the NPV of the decision to replace the computer now? (Negative answers should be indicated by a minus sign. Do not round your intermediate calculations. Round the final answer to 2 decimal places.) NPV