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Mom's Cookies, Incorporated, is considering the purchase of a new cookie oven. The originat cost of the old oven was $45,000, it is now five

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Mom's Cookies, Incorporated, is considering the purchase of a new cookie oven. The originat cost of the old oven was $45,000, it is now five years old, and it has a current market value of $20,000. The old oven is being depreciated over a 10 -year life toward a zero estumated salvage value on a straight-line basis, resulting in a current book value of $22,500 and an annual depreciation expense of $4,500. The old oven can be used for six more years but has no market value after its depreciable ife is over Management is contemplating the purchase of a new oven whose cost is $25,000 and whose estimated salvage value is zero. Expected before.tax cash savings from the new oven are $3,400 a year over its life, you can use bonus depreciation on the oven, and the cost of capilal is 10 percent Assume a 21 percent tax rate What will the cash flows for this project be? Note: Note that the $45,000 cost of the old oven is depreciated over ten years at $4,500 per year. The half-year convention is not used for the old oven. Negative amounts should be indicoted by a minus sign. Do not round intermediate calculations and round your answers to 2 decimol places

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