Because Spirit Airlines is expanding its operations at Bradley International, it is considering replacing one of its baggage - handling machines with a newer and more efficient one. The current book value of the existing machine is $50,000, and it has a remaining useful life of five years. Because there is no expected market for the old machine, the salvage value at the end of five years is zero. However they have discovered that they could sell it now to a small regional airport for $10,000. The new baggage - handling machine has a price tag of $120,000 and the supplier guarantees a useful life of seven years. It has an estimated salvage value of $30,000. In addition, Spirit anticipates an annual savings of $50,000 due to lower electrical power usage, labor, and repair costs, and very importantly, a reduction in damaged luggage. Spirit's corporate MARR is 15%, which is slightly higher than their competitors. Using the opportunity cost approach, answer the following questions: 1) What is the initial cash outlay required for this new machine? 2) What are the cash flows for the defender in years zero through five? 3) What is the basis for your recommendation to Spirit