answer all questions in the photos.

omplete the following table and compute the incremental cash flows associated with the replacement of the oid equipment with the new equipment 4. Analysis of a replacement project At times firms will need to decide if they want to continue to use their current equipment or replace the equipment with newer equipment. The company will need to do replacement analysis to determine which option is the best financial decision for the company. Price Co, is considering replecing an existing plece of equipment. The project involves the following: - The new equipment will heve a cost of $9,000,000, and it is eligible for 100% bonus depreciation so it will be fully depreciated at t=0. - The old machine was purchased before the new tex law, so it is being depreciated on a straight-line basis. 10 has a book value of $200,000 (at year 0) and four more years of depreciation left ($50,000 per year). - The new equipment will have a salvoge value of 50 at the end of the project's life (year 6 ). The old machine has a current oalvage value (at year o) of 5300,000 . - Replacing the old machine wilt require an investment in net operating working capital (NowC) of $50,000 that will be recovered at the and of the project's life (year 6 ). - The new machine is more efficient, so the firm 's incremental esrnings before interest and taxes (EBTT) will increase by a total of s300,000 in each of the next six years (years 1-6). Hint: This value represents the difference between the revenues and operating costs (including depreclation expense) generated using the new equipment and that earned using the old equipment. - The project's cost of capital is 1346. - The company's annual tax rate is 25% The net present value (NPV) of this replacement project is: $4,792,909$6,484,523$4,229,037$5,638,716