Dear Experts, I want to know each step of (Revenue - op Exp) (1-t) and plus tax depreciation of questions 11.36 and 11.37

11.36 ACME Manufacturing is considering replacing an existing production line with a new line that has a greater output capacity and operates with less labour than the existing line. The new line would cost $1 million, have a five-year life, and be depreciated using MACRS over three years. At the end of five years, the new line could be sold as scrap for $200,000 (in Year 5 dollars). Because the new line is more automated, it would require fewer operators, resulting in a savings of $40,000 per year before tax and unadjusted for inflation (in todays dollars). Additional sales with the new machine are expected to result in additional net cash inflows, before tax, of $60,000 per year (in todays dollars). If ACME invests in the new line, a one-time investment of $10,000 in additional working capital will be required. The tax rate is 35 per cent, the opportunity cost of capital is 10 per cent, and the annual rate of inflation is 3 per cent. What is the NPV of the new production line?

11.37 The alternative to investing in the new production line in Problem 11.36 is to overhaul the existing line, which currently has both a book value and a salvage value of $0. It would cost $300,000 to overhaul the existing line, but this expenditure would extend its useful life to five years. The line would have a $0 salvage value at the end of five years. The overhaul outlay would be capitalized and depreciated using MACRS over three years. Should ACME replace or renovate the existing line?