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Complete the following table and compute the incremental cash flows associated with the replacement of the old equipment with the new equipment. Year o Year
Complete the following table and compute the incremental cash flows associated with the replacement of the old equipment with the new equipment. Year o Year 1 Year 2 Year 3 Year 3 Year 4 Year 5 Initial investment EBIT - Taxes -A Depreciation XT + Salvage value - Tax on salvage - NOWC Recapture of NOWC Total free cash flow The net present value (NPV) of this replacement project is: 0 -$3,542,758 0-$5,668,412 0-$4,723,677 0 -$5,432,229
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