a$)$ What is the accumulated depreciation of the old equipment?

b$)$ What is the current book value of the old equipment?

c$)$ What is the amount of depreciation recapture$/$recovery$?$

d$)$ What is the tax on the sale of the old equipment?

e$)$ What are the after$-$tax proceeds from the sale of the old equipment?

f$)$ What is the change in Net Working Capital?

g$)$ What is the initial investment for the project?

A small manufacturer is considering an equipment replacement project. The new equipment would have an installed cost of $$125,000$ and would replace existing equipment that was purchased $3$ years ago at an installed cost of $$80,000.$ If the company moves forward with the replacement, it could sell the old equipment for $$25,000.$ Purchasing the new equipment would result in the company's current assets increasing by $$12,000$ and current liabilities increasing by $$9,000.$ The company uses the $5-$year MACRS table for depreciation $($use the rates from our text and homework problems$)$ and is taxed at $21\%.$ Students must do NEED EXACT EXCEL FORMULAS PLEASE