helpppp

The Bigbee Botting Company is contemplating the replocement of one of its bottling machiner with a newer and more efficlent ont: The old machine was. purchased prior to the TCIA, has a book value of $650,000, and a remaining useful life of 5 years, The firm does not expect to realize any retum from. scrapping the old machine in 5 years, but it can sell it now to another firm in the ingustry for $265,000. The old machine is being depreciated by $130,000 per year, using the stralght-line method. The new machine has a purchase price of $1,150,000, an estimated wseful life of 5 years, and an estimated salvage value of $120,000, The hew machine is eligible for 100% bonus depreciation at the time of purchase. It is expected to econoriziz on electric power usage, labog, and ripali costs, as weil as to reduce the number of defective botties, In total, an annual savings before taxes of $225,000 will be realited if the new machine is inskalied, The coinpain't marginal tax rate is 25%, and it has a 12% WACC. a. What initial cash outiay is required for the new machine after bonus depreciation is considered? Cash outhow should be indicated by a minut sign Round. your answer to the neorest dollar: 5 b. Calculote the change in the annual depreciation expense if the replacement is made. Negative change values; if any, thould be indicated by a minus sign. Round your answers to the nearest dollar: c. Whot are the incremental cash fows in Years 1 through 5 Round your answers to the nearest dollar. Year 1 Year 2 Year 3 Year 4 Years 5 (2) 5 (8) 3 8 is (3)