hand solution with formula

Damon Corporation, a sports equipment manufacturer, has a machine currently in use that was originally purchased 3 years ago for $120,000. The firm depreciates the machine under MACRS using a 5-year recovery period. Once removal and cleanup costs are taken into consideration, the expected net selling price for the present ma- chine will be $70,000. Damon can buy a new machine for a net price of $160,000 (including installa- tion costs of $15,000). The proposed machine will be depreciated under MACRS us- ing a 5-year recovery period. If the firm acquires the new machine, its working capital