Do not copy paste from chegg and answer in excel

CompU is looking at starting a major advertising campaign to further expand their business. Based on preliminary estimates, the advertising campaign will cost $110,000 and will increase revenue by $80,000 per year for the next 5 years. The increased expenses excluding depreciation will be $35,000 per year. The company is in the 40% tax bracket. The ad campaign will be capitalized and depreciated using a 5-year MACRS recovery schedule (20%, 32%, 19%, 12%, 12%, 5%).

a. Calculate the annual operating cash flows for the project.

2. CellU, a subsidiary of CompU, is looking to replace one of the machines they use to manufacture cell phones with a new, more efficient model. The installed cost of the new machine less what they can sell the old machine for is $12,190. The current machine cost $7,500, is three years old, and is depreciated using the MACRS 3-year recovery period (33%, 45%, 15%, 7%). The expected life of the new machine is 3 years, is depreciated using the MACRS 3-year recovery period, and will reduce annual labor expenses from $10,000 to $4,000. The firm has a marginal tax rate of 40 percent.

a. Calculate the annual incremental operating cash flows for the new machine