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Alpha Beta Company, Inc., a manufacturer of toys, is considering replacing an existing piece of equipment with a more sophisticated machine. The firm pays 4

Alpha Beta Company, Inc., a manufacturer of toys, is considering replacing an existing piece of equipment with a more sophisticated machine. The firm pays 40 percent taxes on ordinary income and capital gains. Given the following information, calculate the incremental after-tax cash flow (relevant cash flows) in year 1. Existing MachineCost =43127Purchased 2 years agoDepreciation using straight-line method (20% depreciation each year)Useful life =5 yearsCurrent market value ={B}Annual cash flows =13945 Proposed MachineCost =108892Installation =6644Depreciation using straight-line method (20% depreciation each year)Useful life =5 yearsAnnual cash flows =53083 Note: Read the question carefully. Use one decimal place

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