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A. what is NPV of the decision to purchase a new machine? B. What is IRR of decision to purchase new machine? C. What is NPV of decision to purchase old machine? D. What is IRR of decision to purchase old machine? Please show how to solve with financial calculator if it's possible.

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A firm is considering an investment in a new machine with a price of $111 million to replace its
existing machine. The current machine has a book value of $6.? million and a market value of
$5.4 million. The new machine is expected to have a 4-year life, and the old machine has four
years left in which it can be used. If the firm replaces the old machine with the new machine, it
expects to save $6.95 million in operating costs each year over the next four years. Both
machines will have no salvage value in four years. If the firm purchases the new machine, it will
also need an investment of $380,000 in net working capital. The required return on the
investment is 9 percent and the tax rate is 23 percent. The company uses straight-line

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