it is being depreciated by the straight$-$line method by $$10,000$ per year. If the machine is not replaced, it can be sold for $$10,000$ at the end of its useful life.

change. At the end of its useful life, the machine is estimated to be worthless. The new machine is eligible for $100\%$ bonus depreciation at the time of purchase.

The old machine can be sold today for $$50,000.$ The firm's tax rate is $25\%.$ The appropriate WACC is $9\%.$

your answer to the nearest dollar.

$

b$.$ What are the incremental cash flows that will occur at the end of Years $1$ through $5?$ Round your answers to the nearest dollar.

Year $1$

Year $2$

Year $3$

Year $4$

Year $5$

$

$

$

$

$

c$.$ What is the NPV of this project? Do not round intermediate calculations. Round your answer to the nearest cent.

$

Should Darlington replace the old machine?