An equipment company purchased a machine 5 years ago at a cost of $100,000. It had an expected life of 11 years at the time of purchase and an expected salvage value of $10,000 at the end of the 11 years. It is being depreciated by the straight-line method toward a salvage value of $10,000. A new machine can be purchased for $150,000. Over its 6-year life, it will reduce cash operating expenses by $50,000 per year. Sales are not expected to change. At the end of its useful life, the machine is estimated to be worthless. Straight-line depreciation will be used over its 6-year economic life. The old machine can be sold today for $65,000. The firm's tax rate is 34 percent. The firm’s WACC is 12 percent. Should the project be undertaken?