Clean Duds Laundromat has an industrial water softener that enhances the water quality used in its washing machines. The water softener is approaching the end of its useful life and must be either overhauled or replaced. Details of the two alternatives are shown below. if the company overhauls its current water softener, then it will be usable for eight more years. If, instead, a new water softener is purchased, it will be used for eight years, after which it will be replaced. The new water softener will be considerably more energy efcient, resulting in a substantial reduction in annual operating costs, as shown below: \"it? .1, we . .. Purchase cost neu $16,866 :3 22,666 Remaining book value $12,566 Overhaul needed now 5 3,666 Annual cash operating costs $16,666! 5 6,966 Salvage value now $ 3,666 Salvage value eight years from now $ 1,863 E 4,666 Clean Duds computes depreciation on a straightline basis. All equipment purchases are evaluated using a 12% discount rate. Required: [ignore income taxes.) 1-a. Determine the present value of net cash ows using the total-cost approach. (Hint. Use Microsoft Excel to calculate the discount factorisJJ (Enter any cash outows with a minus sign. Do not round intermediate calculations and round final answets to the nearest dollar amount.) Pmdtase the new so'aner Upgrade and Keep the old softener 1-b. Should Clean Duds Laundromat upgrade the old water softener or purchase the new one? 0 Purchase the new softener 0 Upgrade the old softener 2. Using the incremental-cost approach, determine the net present value in favor of[or against} purchasing the new water softener? {Hint Use Microsoft Excel to calculate the discount factorisH (Do not round intermediate calculations and round nal answer to the nearest dollar amount} :I