I'm unsure what I'm doing wrong, I would greatly appreciate the help! I have also tried the following answers: 1. $134,494

2. $27,659 3. $20,525 4. $24,326

They are also wrong. If someone could please help I would greatly appreciate it!

Assume that it is January 1, 2022, and that the Mendoza Company is considering the replacement of a machine that has been used for the past 3 years in a special project for the company. This project is expected to continue for an additional 5 years (i.e., until the end of 2026). Mendoza will either keep the existing machine for another 5 years ( 8 years total) or replace the existing machine now with a new model that has a 5-year estimated life. Pertinent facts regarding this decision are as follows: "Note: These amounts are used for depreciation calculations. Assume further that Mendoza is subject to a 40% income tax, for both ordinary income and gains/losses associated with disposal of machinery, and that all cash flows occur at the end of the year, except for the initial investment. Assume that straight-line depreciation is used for tax purposes and that any tax associated with the disposal of machinery occurs at the same time as the related transaction. Requlred: 1. Determine relevant cash flows (after-tax) at the time of purchase of the new machine (i.e., time 0: January 1, 2022). 2. Determine the relevant (after-tax) cash inflow each year of project operation (i.e., at the end of each of years 1 through 5 ). 3. Determine the relevant (after-tax) cash inflow at the end of the project's life (i.e., at the project's disposal time, December 31,2026 ). 5. Determine the undiscounted net cash flow (after tax) for the new machine and determine whether, on this basis, the old machine should be replaced. (For all requlrements, do not round Intermedlate calculatlons. round your onswers to the nearest whole doller amount.) Assume that it is January 1, 2022, and that the Mendoza Company is considering the replacement of a machine that has been used for the past 3 years in a special project for the company. This project is expected to continue for an additional 5 years (i.e., until the end of 2026). Mendoza will either keep the existing machine for another 5 years ( 8 years total) or replace the existing machine now with a new model that has a 5-year estimated life. Pertinent facts regarding this decision are as follows: "Note: These amounts are used for depreciation calculations. Assume further that Mendoza is subject to a 40% income tax, for both ordinary income and gains/losses associated with disposal of machinery, and that all cash flows occur at the end of the year, except for the initial investment. Assume that straight-line depreciation is used for tax purposes and that any tax associated with the disposal of machinery occurs at the same time as the related transaction. Requlred: 1. Determine relevant cash flows (after-tax) at the time of purchase of the new machine (i.e., time 0: January 1, 2022). 2. Determine the relevant (after-tax) cash inflow each year of project operation (i.e., at the end of each of years 1 through 5 ). 3. Determine the relevant (after-tax) cash inflow at the end of the project's life (i.e., at the project's disposal time, December 31,2026 ). 5. Determine the undiscounted net cash flow (after tax) for the new machine and determine whether, on this basis, the old machine should be replaced. (For all requlrements, do not round Intermedlate calculatlons. round your onswers to the nearest whole doller amount.)