FORMULA APPROACH ONLY- No Excel or Calculator

The Darlington Equipment Company purchased a machine 5 years ago, prior to the TClA, at a cost of $80,000. The machine had an expiected life of 10 years at the time af purchase; and it is being depreciated by the straight-ine method by $8,000 per year. If the machine is not replaced, it can be sold for $15,000 at the end of its useful ife. A new mathine cm be purchased for $170,000, inciudang installation costs. During its 5 -year life, it will reduce casti operation expenses by 560,000 per yoar, Saies are not expected to change. At the end of its useful life, the machine is estimated to be worthless. The riew machine is elioible for 100% bonus deprecaticin at the time of norchase. The old machine can be sold today for $55,000. The firm's tax rate is 25%. The appropriate wacc is 9%. a. If the new machane is purchased, what is the amount of the initial cash flow at Year 0 ofter bonus deprecistion is considesed? Cash outflow sheuld be indicatnd by a minis sign. Round vour answer to the nearest dollar, 5 6. What are the incremental cash flows that will occur at the end of Years 1 through 5 ? Round your answers to the nearest dollar. c. What is the NPy of this project? Do not round intermediate calculations. Round your answer to the nearest cent. 5 Should Darinaton replace the old machine