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9) Global company is considering replacing one of its equipmentwith a more efficient one. The old machine has a book value of$60,000 and a remaining useful life of 5 years. It can sell the oldmachine now for $ 265,000. The old machine is being depreciated by120,000 per year straight line. The new machine has a purchaseprice of $ 1,175,000 an estimated useful life and 5 years MACRSclass life and salvage value of $145,000. Annual economic savingsis $255,000 if new machine is installed. Taxes 40% and WACC is12%.a. Calculate the initial cash flow at time 0, which istoday.b. Calculate the cash flows for years 1 thru 5.c. Calculate the terminal value at year 5d. Calculate the NPV and IRR of the project and make a decisionon whether the company should accept or reject the investment andwhy?