d) ABC Inc. is considering to purchase a new printing machine to replace an old one. The new machine costs $150,000 and has a useful life of four years, at which time it can be sold for $20,000. The old printing machine can be sold now for $15,000 and could be scrapped for $1,500 in four years. The company believes that operating revenues will increase annually by $30,000. The tax rate is 40% and the required rate of return is 15% and the PV of CCATS is estimated at $32,195.6. What is the NPV of the new machine? Should ABC Inc. replace the old pain sprayer? Explain (use below table in your answer) Years 0 1121314 Initial Investment Salvage Value Sale of old equipment Opportunity cost Total Capital Spending Increase in Revenues Taxes After-tax Operating Cash Flow Total Capital Spending & after tax OCF PV of CF PVCCAT 32,195.6 INPV Should ABC Inc. accept or reject the project? Explain