Question: 1. Hoover Printing has a printing press that still has a useful life of 3 years, a book value of $35,000, could be currently sold for $28,000, and a salvage value of $21,000 at the end of its useful life. They are considering replacing it with a new press that will cost $100,000 that will last for 8 years with a salvage value of $4,000 at the end of the 8 years. Depreciation is not being considered in this analysis. By replacing the press they expect to increase annual earnings before taxes (through press efficiencies) by $20,000 a year increasing by 3% annually. Their net income is taxed at a 31% rate. Do a cash flow analysis, show the whole analysis, and recommend whether the new machine should be bought now or in 3 years when the old press must be replaced. Project WACC is 9.5%. Provide NPV, IRR, MIRR, & Profitability Index of the project. Round all financial numbers to whole dollars, IRR & MIRR to 1 decimal place percentage and PI to two decimal places.