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I only need help with questions h through K1 my numbers are not coming out right Hercules Exercise Equipment Co. purchased a computerized measuring device

I only need help with questions h through K1 my numbers are not coming out right

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Hercules Exercise Equipment Co. purchased a computerized measuring device two years ago for $64,000. The equipment falls into the five-year category for MACRS depreciation and can currently be sold for $27,800. A new piece of equipment will cost $154,000. It also falls into the five-year category for MACRS depreciation. Assume the new equipment would provide the following stream of added cost savings for the next six years. Use Table 1212. Use Appendix B for an approximate answer but calculate your final answer using the formula and financial calculator methods. Year 1 2 3 4 5 6 Cash Savings $ 65,000 57,000 55,000 53,000 50,000 39,000 The firm's tax rate is 25 percent and the cost of capital is 8 percent. a. What is the book value of the old equipment? (Do not round intermediate calculations and round your answer to the nearest whole dollar.) Book value b. What is the tax loss on the sale of the old equipment? (Do not round intermediate calculations and round your answer to the nearest whole dollar.) Tax loss c. What is the tax benefit from the sale? (Do not round intermediate calculations and round your answer to the nearest whole dollar.) Tax benefit d. What is the cash inflow from the sale of the old equipment? (Do not round intermediate calculations and round your answer to the nearest whole dollar.) Cash inflow h. Determine the incremental depreciation between the old and new equipment and the related tax shield benefits. (Enter the tax rate as a decimal rounded to 2 decimal places. Round all other answers to the nearest whole dollar.) Year Depreciation Depreciation on New on Old Equipment Equipment Incremental Depreciation Tax Rate Tax Shield Benefits 1 2 3 4 5 6 i. Compute the aftertax benefits of the cost savings. (Enter the aftertax factor as a decimal rounded to 2 decimal places. Round all other answers to the nearest whole dollar.) Year (1 Tax Rate) Aftertax Savings 1 2 3 Savings $ 65,000 57,000 55,000 53,000 50,000 39,000 4 5 6 j-1. Add the depreciation tax shield benefits and the aftertax cost savings to determine the total annual benefits. (Do not round intermediate calculations and round your answers to the nearest whole dollar.) Total Annual Benefits Tax Shield Aftertax Benefits Year Cost from Depreciation Savings 1 2 3 4 5 6 j-2. Compute the present value of the total annual benefits. (Do not round intermediate calculations and round your answer to the nearest whole dollar.) Present value k-1. Compare the present value of the incremental benefits (j) to the net cost of the new equipment (e) (Do not round intermediate calculations. Negative amount should be indicated by a minus sign. Round your answer to the nearest whole dollar.) Net present value k-2. Should the replacement be undertaken? Yes

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