ABC Company is contemplating the purchase of a new high-speed widget grinder to replace the existing grinder. The existing grinder was purchased 2 years ago at an installed cost of $60,000; it was being depreciated under MACRS using a 5-years recovery period. The existing grinder is expected to have a usable life of 5 more years. The new grinder costs $105,000 and requires $5,000 installation costs; it has a 5-year usable life and would be depreciated under MACRS using a 5- year recovery period. ABC Company can currently sell the existing grinder for $70,000 without incurring any removal or cleanup costs. To support the increased business resulting from purchase of the new grinder, accounts receivable would increase by $40,000, Inventories by $30,000, and accounts payable by $58,000. At the end of 5 years, the existing grinder is expected to have a market value of zero; the new grinder would be sold to net $29,000 after removal and cleanup costs and before taxes. The firm is subject a 40% tax rate. The estimate earnings before depreciation, interest, and taxes over the 5 years for both the new and the existing grinder are shown in the following table. Year Earnings before depreciation, interest and taxes New grinder Existing grinder $ 43,000 $ 26,000 43,000 43,000 43,000 43,000 24,000 22,000 20,000 18,000 a. Create a spreadsheet to calculate the initial investment associated with the replacement of the existing grinder by the new one. b. Create a spreadsheet to determine the incremental operating cash inflows associated with the proposed grinder replacement. c. Create a spreadsheet to determine the terminal cash flow expected at the end of year 5 from the proposed grinder replacement