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depreciated by $160,000 per year for each year of its remaining life. chickens. In total, an annual savings of $245,000 will be realized if the

image text in transcribed depreciated by $160,000 per year for each year of its remaining life. chickens. In total, an annual savings of $245,000 will be realized if the new machine is installed. The company's marginal tax rate is 35% and the project cost of capital is 14%. a. What is the initial net cash flow if the new machine is purchased and the old one is replaced? Round your answer to the nearest dollar. your answers to the nearest dollar. c. What are the incremental net cash flows in Years 1 through 5 ? Do not round intermediate calculations. Round your answers to the nearest dollar. d. Should the firm purchase the new machine? Support your answer. Do not round intermediate calculations. Round your answer to the nearest dollar. NPV: $

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