Al-Huda Inc. want to replace an old asset with a new one. The new asset costs $50,000 and has installation costs of $3,000. The asset will be depreciated using a 5-year recovery period. The old asset, which originally cost $25,000 and will be sold for $10,000, has been depreciated using MACRS 5-year recovery period and three years of depreciation have already been taken. The new asset is expected to result in incremental before-tax net profits of $15,000 per year. The firm has a 40 percent tax rate The initial cashflow equals Choose... The incremental depreciation expense for year 5 is Choose... The book value of the existing asset Choose... > The tax effect on the sale of the old CISSO Choose... etis & $44,100 of $ $38,800 $16,600 $13,950 $1,100 tax liability $21,250 $38,960 $15,000 $41,100 $7,950 $6,360 $1,100 tax benefit $5,110 $25,600 $1,000 tax liability et $7,250 $7.250