J1 has the correct answers, but J2 & K1 Current answers are NOT correct. Thanks ahead!

Hercules Exercise Equipment Co. purchased a computerized measuring device two years ago for $54,000. The equipment falls into the five-year category for MACRS depreciation and can currently be sold for $22.800. A new piece of equipment will cost $144.000. 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 12-12. Use Appendix B for an approximate answer but calculate your final answer using the formula and financial calculator methods. Year 1 2 3 Cash Savings $ 60,000 52,000 50,000 48,000 45,000 34,000 5 6 The firm's tax rate is 25 percent and the cost of capital is 10 percent. 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.) Year Aftertax Cost Savings Total Annual Benefits $ Tax Shield Benefits from Depreciation 4,608 9,965 5,357 3,357 4,140 2,088 45,000 39,000 37,500 36,000 33,750 25,500 49,608 48,965 42,857 39,357 37,890 27,588 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 $ 246,265 k-1. Compare the present value of the incremental benefits (i) 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 $ 102,265