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A firm is considering an investment in a new machine with aprice of $18.02 million to replace its existing machine. Thecurrent machine has a book value of $6.02 million and a marketvalue of $4.52 million. The new machine is expected to have afour-year life, and the old machine has four years left in which itcan be used. If the firm replaces the old machine with the newmachine, it expects to save $6.72 million in operating costs eachyear over the next four years. Both machines will have no salvagevalue in four years. If the firm purchases the new machine, it willalso need an investment of $252,000 in net working capital. Therequired return on the investment is 10 percent and the tax rate is35 percent. What is the NPV of the decision to purchase a newmachine?