It is suggested that the machine be replaced by a new CNC machine of improved design at a cost of $6,000. It is believed that this purchase will completely eliminate breakdowns and the resulting cost of delays and that operation and repair costs will be reduced $200 a year. Assume a 5-year life for the challenger and a $1,000 terminal salvage value. Straight line depreciation is used. The firm’s MARR is 10%, and its marginal tax rate is 30%. Should the old machine be replaced now?