Assume thet it is January 1, 2019, and that the Mendoza Company is considering the replacement of a machine that has been used for the past 3 years in a special project for the company This project is expected to continue for an additional 5 years (le. until the end af 2023). Mendoza will ether keep the existing machine for another 5 years (8 years total) or replace the existing machine now with a new model that has a 5-year estimated life Pertinent facts regarding this decision are as follows Keep Existing Purchase New Machine Purchase price of machine (including transportation, setup charges, etc.) Useful life (deternined at tine of acquisition) Estinated salvage value, end of 2823 Expected cash operating costs, per year: $ 157,090 $ 197,809 5 years s 28,788 s 25,780 Variable (per unit produced/sold) fixed costs (total) Estinated salvage (terninal) values: $ 8.32 25,78e 5 8.26 5 24,799 January 1, 2819 68,788 5 13,858 Decenber 31, 2823 Net working capital committed at tine of s 23,40a acquisition of existing machine (all ully recovered at end of project, December 31, 2023) Incremental net working capital required itf 5 38,760 new machine is purchased on January 1, 2819 (all fully recovered at end of project, December 31, 2823) Expected annual volune of output/sales (in 5 18,700 units), over the period 2819-2823 587,060 507,08 "Note: These amourns are used for depreciation calkulations. Assume further that Mendoza is subject to a 30% ncome tax, both for ordnary incom e and gains/losses associated with disposal of machinery, and that all cash flows occur at the end of the year. except for the initial investm is used for tax purposes and that any tax associated with the disposal of machinery occurs at the same time of the ent. Assume that straight-line depreciation related transaction 1 Determine reievant cash flows (aher 4ax 2. Determine the relevans lafter-tax) cash infiow eac 3. l at time of purchase of the new machine fe. time O. January 1, 2019 h year of project ation Le at the end of each of years 1 through 5). D Determine the relevant (after-tax) cash infiow at the end of the praject's life p.e at the 5 Desermine the undiscounted nes cash Sow later tax) for the new machine and determine whet should be replaced. project's disposal I time, December 31, 2023) n Intermediete caiculations, round your answer Par all requirements, do not round to the nearest whole dollar amount.)