Company firm based in Silicon Valley, USA. The company want to prove their solution business by improving their bigdata and supercomputers in doing so, the company can be either upgrade sheriginal version or replace with new version. ComonyX will acquire bigdata and supercomputers by using the most efficient way. Gulf United is in the 40% tax bracket and cost of capital of 10% The conditions of the upgrade the original version or replace with the new version for biasa disand supercomputers are as follows Upgrade the original version Initial cost of old big data $ 150.000 Annual depreciation of $15.000 The old big data facilities were purchased 5 years ago The current book value of old bigdata $ 75,000 The salvage value of old bigdata (today $95.000 The salvage value in 5 years 5 20,000 Replace with the new version Initial cost of new bigdata $ 250,000 Its anticipated to have 5 years life The salvage value in 5 years 50 Cost savings per year $75.000 per year The company will use 3 years MACR deprecation TABLE MACES Answer the following questions (Note: kindly show All the necessary step/citetin a Calculate the depreciation expense for new bigdata 3.5 using MACOS chod Calculate the projected net income. - Yt5) Find the after tax salvage value of old big data in . Calculate incremental net capital spending in Y0 e Find the after tax salvape value of old big data in 5 Calculate the operating cash flows (OCF) from Yr 1-5 Calculate the total cash flow for cash flow from its CFFA) from 1-5 Calculate the NPV and IRR (you may use financial calculator What is your advice to Company? Should they replace bigdata with the new version) Explain the concept of incremental cash flows and standalone principle Companyx firm based in Silicon Valley, USA. The company want to improve their IT solution business by improving their bigdata and supercomputers. In doing so, the company can be either upgrade the original version or replace with new version. CompnyX will acquire bigdata and supercomputers by using the most efficient way. Gulf United is in the 40% tax bracket and cost of capital of 10%. The conditions of the upgrade the original version or replace with the new version for bigdata facilities and supercomputers are as follows: Upgrade the original version: Initial cost of old big data = $ 150,000 Annual depreciation of $ 15,000 The old big data facilities were purchased 5 years ago The current book value of old bigdata = $ 75,000 The salvage value of old bigdata (today) = $ 95,000 - The salvage value in 5 years = $ 20,000 Replace with the new version: Initial cost of new bigdata = $ 250,000 Its anticipated to have 5 years life The salvage value in 5 years = $0 - Cost savings per year = $ 75,000 per year The company will use 3-years MACRS depreciation. TABLE 1 MACRS Hall Year Convention Depreciation Rate for Recovery Period Year 3-Year 33.33 4445 14 7.41 7-Year 14.29% 24 49 1749 5 Year 20.00 32 00 19 20 1152 1152 5.76 10-Year 1000 18.00 1440 15-Year 50 9.50 2 3 20-Year 3.750 7219 6677 6.172 5712 5.285 0 2 893 6.92 33 4.46 9.22 737 655 6.55 656 6.55 32 7.70 693 623 3.00 5.00 5.91 500 591 5.90 10 11 12 13 14 15 TG 17 18 19 20 5.00 591 295 4522 4462 4.461 4462 4.461 4462 4461 4452 4.461 4.462 4.461 6.402 4.461 Answer the following questions (Note: kindly show ALL the necessary steps/calculations) e. Find the after-tax salvage value of old big data in Yr.5 f. Calculate the operating cash flows (OCF) from Yr.1 - Yr.5 g. Calculate the total cash flow (or cash flow from assets CFFA) from Yr.o - Yr.5 h. Calculate the NPV and IRR (you may use financial calculator) i. What is your advice to CompanyX? Should they replace bigdata with the new version? j. Explain the concept of incremental cash flows and stand-alone principle. Company firm based in Silicon Valley, USA. The company want to prove their solution business by improving their bigdata and supercomputers in doing so, the company can be either upgrade sheriginal version or replace with new version. ComonyX will acquire bigdata and supercomputers by using the most efficient way. Gulf United is in the 40% tax bracket and cost of capital of 10% The conditions of the upgrade the original version or replace with the new version for biasa disand supercomputers are as follows Upgrade the original version Initial cost of old big data $ 150.000 Annual depreciation of $15.000 The old big data facilities were purchased 5 years ago The current book value of old bigdata $ 75,000 The salvage value of old bigdata (today $95.000 The salvage value in 5 years 5 20,000 Replace with the new version Initial cost of new bigdata $ 250,000 Its anticipated to have 5 years life The salvage value in 5 years 50 Cost savings per year $75.000 per year The company will use 3 years MACR deprecation TABLE MACES Answer the following questions (Note: kindly show All the necessary step/citetin a Calculate the depreciation expense for new bigdata 3.5 using MACOS chod Calculate the projected net income. - Yt5) Find the after tax salvage value of old big data in . Calculate incremental net capital spending in Y0 e Find the after tax salvape value of old big data in 5 Calculate the operating cash flows (OCF) from Yr 1-5 Calculate the total cash flow for cash flow from its CFFA) from 1-5 Calculate the NPV and IRR (you may use financial calculator What is your advice to Company? Should they replace bigdata with the new version) Explain the concept of incremental cash flows and standalone principle Companyx firm based in Silicon Valley, USA. The company want to improve their IT solution business by improving their bigdata and supercomputers. In doing so, the company can be either upgrade the original version or replace with new version. CompnyX will acquire bigdata and supercomputers by using the most efficient way. Gulf United is in the 40% tax bracket and cost of capital of 10%. The conditions of the upgrade the original version or replace with the new version for bigdata facilities and supercomputers are as follows: Upgrade the original version: Initial cost of old big data = $ 150,000 Annual depreciation of $ 15,000 The old big data facilities were purchased 5 years ago The current book value of old bigdata = $ 75,000 The salvage value of old bigdata (today) = $ 95,000 - The salvage value in 5 years = $ 20,000 Replace with the new version: Initial cost of new bigdata = $ 250,000 Its anticipated to have 5 years life The salvage value in 5 years = $0 - Cost savings per year = $ 75,000 per year The company will use 3-years MACRS depreciation. TABLE 1 MACRS Hall Year Convention Depreciation Rate for Recovery Period Year 3-Year 33.33 4445 14 7.41 7-Year 14.29% 24 49 1749 5 Year 20.00 32 00 19 20 1152 1152 5.76 10-Year 1000 18.00 1440 15-Year 50 9.50 2 3 20-Year 3.750 7219 6677 6.172 5712 5.285 0 2 893 6.92 33 4.46 9.22 737 655 6.55 656 6.55 32 7.70 693 623 3.00 5.00 5.91 500 591 5.90 10 11 12 13 14 15 TG 17 18 19 20 5.00 591 295 4522 4462 4.461 4462 4.461 4462 4461 4452 4.461 4.462 4.461 6.402 4.461 Answer the following questions (Note: kindly show ALL the necessary steps/calculations) e. Find the after-tax salvage value of old big data in Yr.5 f. Calculate the operating cash flows (OCF) from Yr.1 - Yr.5 g. Calculate the total cash flow (or cash flow from assets CFFA) from Yr.o - Yr.5 h. Calculate the NPV and IRR (you may use financial calculator) i. What is your advice to CompanyX? Should they replace bigdata with the new version? j. Explain the concept of incremental cash flows and stand-alone principle