Intro Your company makes and sells shaving cream. You're thinking of replacing one of your packaging machines. Both the new and the old machine would last another 5 years. Your annual sales will remain constant at $44,000. The old machine could be sold for $5,000 today or $2,000 in 5 years, after taxes. The annual cost of running the machine is $20,000 and its annual depreciation expense is $2,000. The new machine costs $26,000 today and could be sold for $5,200, after taxes, in 5 years. The annual cost of running the machine is $14,000 and its annual depreciation expense is $5,200. The new machine doesn't require any additional net working capital. Your marginal tax rate is 34% and the cost of capital for this project is 10%. Your task is to find out if you should replace the machine. Part 1 Attempt 1/10 for 10 pts. What would be the incremental cash flow from assets in year 0 if you replaced the machine? Part 2 Attempt 1/10 for 10 pts. What would be the cash flow from assets in each of the first 4 years if you kept the old machine? What would be the free cash flow in each of the first 4 years if you bought the new machine? Part 4 Attempt 1/10 for 10 pts. What would be the cash flow from assets in year 5 if you kept the old machine? Part 5 Attempt 1/10 for 10 pts. What would be the cash flow from assets in year 5 if you bought the new machine? Part 6 Attempt 1/10 for 10 pts. What is the NPV of the replacement project