The Taylor Corporation is using a machine that originally cost $66,000. The machine has a book value of $66,000 and a current market value of $40,000. The asset is in the Class 8 CCA pool with a 20% CCA rate. It will have no salvage value after 5 years and the company tax rate is 40%. Jacqueline Elliott, the Chief Financial Officer of Taylor, is considering replacing this machine with a newer model costing $70,000. The new machine will cut operating costs by $10,000 each year for the next five years. Taylor's cost of capital is 8%. Should the firm replace the asset? (Use NPV methodology to solve this problem.) Calculate the Present Values of the followings: 1. Total cashflows in year 0: ($30,000) ($70,000) ($40,000) $30,000 2. Total Annual Savings for the five years: $23,956 $25,789 $45,378 O$11,289 3. PV CCA: O$8,254 $7,963 $9,365 $10,345