I solved A-C but I am not sure if it's correct. I need help on letter D to E

The Bigbee Botting Company is contemplating the replacement of ane of s bong machines with a newer and more efficent one. The old machine has a book vale of s425,000 and a remaining usefd e of 5 years The fm does not expect to realioe any retu tom scrapping the ald machine in 5 years, but it can sell it now bo another fim in the induatry for $250,000 The old machine is being depreciated by $125,000 per year, ing the stretemhd The new mechine has a purchase price of $1,175,000, an etimated useful fe and MACRS dass e of 5 years, and an estimated sahage value of $135,000. The applicable depretion tes are 20%, 3%, 19% , 12%, 11%, and % t is epected to econemice on eledtric power usage, labor, and epair costs, as well as to reduce the number of defective bottles. In total, an annual savings of $20s,000 w be realed if the new machine is installed The ompany's marginal tax rate is 35 %, and a hes a 12% WACc What initiel cash euey is required for the new machine? Round your anwwer to the nearest dear, Negeve amouant should be indicated by a minus sign 925000 b Caloulate the annual depreciation allowances for both machines and compute the change in the aal depreciaton expese the replacement is made und your answers to the nearest dola Year Deprediation Depreciation Ohange in Allowance, Allowance, Depreciation New 1 235000 125000 110000 21 36000 125000 251000 223250 125000 98250 4 141000 125000 16000 129250 125000 4250 c What are the incremental net cash lows in Years 1 through $? Raund your answerrs to the nearest dolar Year 1 Year 3 Year 3 Year 4 Year S 171750 188900 167637 50 138850 134737 50 4Should the firm purchase the new machine Select Support your anwer The input in the box below will not be graded, but may be revieed and conaidered by your intructor e In general, how would each of the following factors affect the ivestment decisien, and how shoud each be treabed? . The expected Me of the existing machine decreases The input in the box below wil ot be graded, but may be reviewed and considered by your instructar 2: The WACC is not constant, bu is increasing as bigbee adds more prajects into ts captal budget for the vear The input in the bax below wil not be graded, bu may be reviewed and considered by your insrudtor The Bigbee Bottling Company is contemplating the replacement of one of its bottling machines with a newer and more efficient one. The old machine has a book value of $625,000 and a remaining useful life of 5 years. The firm does not expect to realize any return from scrapping the old machine in 5 years, but it can sell it now to another firm in the industry for $250,000. The old machine is being depreciated by $125,000 per year, using the straight-line method. The new machine has a purchase price of $1,175,000, an estimated useful life and MACRS clans life of S years, and an estimated salvage value of $135,000. The applicable depreciation rates are 20% , 326 , 19%, 12 % , 11%, and 6 % . It is expected to economize on electric power usage, labor, and repair costs, as well as to reduce the number of defective bottles. In total, an annual savings of $205,000 willl be realized if the new machine is installed. The company's marginal tax rate is 35 % , and it has a 12 % WAC a. What initial cash outlay is required for the new machine? Round your answer to the nearest dollar. Negative amount should be indicated by a minus sign. 925000 b. Calculate the annual depreciation allowances for both machines and compute the change in the annual depreciation expense if the replacement is made. Round your answers to the nearest dollar. Year Depreciation Depreciation Change in Allowance, Allowance, Old Depreciation New 1 235000 125000 110000 376000 125000 251000 3 223250 125000 98250 4 141000 125000 16000 5 129250 125000 4250 c. What are the incremental net cash flows in Years 1 through 57 Round your answers to the nearest dollar. Year 1 Year 2 Year 3 Year 4 Year 5 $ $ $ 171750 188900 167637.50 138850 134737.50 d. Should the firm purchase the new machine? Select- Support your answer. The input in the box below will not be graded, but may be reviewed and considered by your instructor. e. In general, how would each of the following factors affect the investment decision, and how should each be treated? 1. The expected life of the existing machine decreases. The input in the box below will not be graded, but may be reviewed and considered by your instructor. 2. The WACC is not constant, but is increasing as Bigbee adds more projects into its capital budget for the year The input in the box below will not be graded, but may be reviewed and considered by your instructor