financial management: replacement analysis

Purple Turtle Group is company that produce iGadgets, among several other product. Suppose that purple Turtle Group considers replacing its did machine used to make iGadgets with a more effective one, which would cost $1, 800 and regain $250 annually, operating costs Except depreciation. After-tax salvage value of the old machine $600. while its annual operating costs except depreciation are $1, 100 Assume that, regardless of the age of the equipment, Purple Turtle Group's sales revenues fixed at $3, 500 and depreciation on the old machine $600. Assume also that the tax rates 40% and the projects risk adjusted cost of capital, r, is the same as weighted average of capital (WACO) and equals 10%. Based on the data, net cash flows (NCM) before replacement are $1, 800, and they over four year. Although Purple Turtle Group's NCM before replacement are the same over the 4-year period, its NCM after replacement vary annually. The following table shows depreciation rates over four years. Complete the following table and calculate incremental cash flows in each year. Purple Turtle Group is company that produce iGadgets, among several other product. Suppose that purple Turtle Group considers replacing its did machine used to make iGadgets with a more effective one, which would cost $1, 800 and regain $250 annually, operating costs Except depreciation. After-tax salvage value of the old machine $600. while its annual operating costs except depreciation are $1, 100 Assume that, regardless of the age of the equipment, Purple Turtle Group's sales revenues fixed at $3, 500 and depreciation on the old machine $600. Assume also that the tax rates 40% and the projects risk adjusted cost of capital, r, is the same as weighted average of capital (WACO) and equals 10%. Based on the data, net cash flows (NCM) before replacement are $1, 800, and they over four year. Although Purple Turtle Group's NCM before replacement are the same over the 4-year period, its NCM after replacement vary annually. The following table shows depreciation rates over four years. Complete the following table and calculate incremental cash flows in each year