amount equal to the book value of the equipment. would be $100,000 per year. The firm faces an income tax rate of 30 percent. At the end of the 4-year project both cutters could be sold at their end-of-project book value. a. What are the differential operating cash flow savings per year during years 1 through 4 for the new plasma cutter? b. What is the initial cash outlay required to replace the existing plasma cutter with the newer model? c. What does the timeline for the replacement project cash flows for years 0 through 4 look like? d. If the company requires a discount rate of 15 percent for new investments, should the plasma cutter be replaced? a. The differential operating cash flow savings per year during years 1 through 3 for the new cutter are $ (Round to the nearest dollar.) The terminal cash flow of the new cutter is $ (Round to the nearest dollar.) b. The initial cash outlay required to replace the existing cutter with the newer cutter is $ (Round to the nearest dollar.) c. Is the timeline below an accurate representation of the replacement project cash flows for years 0 through 4 ? (Select from the drop-down me d. Assuming the Minot Kit Aircraft Company requires a discount rate of 15% for new investments, the plasma cut it choice below.) A. should be purchased because the NPV is $37,327; it would be a worthwhile investment for the company. B. should not be purchased because the NPV is $37,327; it would not be a worthwhile investment for the company