Net cash flows Central Laundry and Cleaners is considering replacing an existing piece of machinery with a more sophisticated machine. The old machine was purchased $3$ years ago at a cost of $$48,400,$ and this amount was being depreciated under MACRS using a $5-$year recovery period. The machine has $5$ years of usable life remaining. The new machine that is being considered costs $$76,200$ and requires $$3,600$ in installation costs. The new machine would be depreciated under MACRS using a $5-$year recovery period. The firm can currently sell the old machine for $$54,000$ without incurring any removal or cleanup costs. The firm is subject to a tax rate of $21\%.$ The revenues and expenses $($excluding depreciation and interest$)$ associated with the new and the old machines for the next $5$ years are

a$.$ Calculate the initial cash flow associated with replacement of the old machine by the new one.

b$.$ Determine the periodic cash flows associated with the proposed replacement. $($Note: Be sure to consider the depreciation in year $6.)$

c$.$ Depict on a time line the net cash flows found in parts $($a$)$ and $($b$)$ associated with the proposed replacement decision.

a$.$ Calculate the initial cash flow associated with replacement of the old mac

Calculate the initial cash flow below: $($Round to the nearest dollar.$)$

Cost of new asset

Installation costs

Total cost of new asset

Proceeds from sale of old asset

Tax on sale of old asset

Total proceeds, sale of old asset

Initial cash flow

Data table

$($Click on the icon here $D$ in order to copy the contents of the data table below into a spreadsheet.$)$

$\backslash$table$[[$Year$,$New machine,Old machine$],[$Revenue$,\backslash$table$[[$Expenses$],[($excluding depreciation$],[$and interest$)]],$Revenue,$\backslash$table$[[$Expenses$],[($excluding depred$],[$and interest$]]],[1,$$$749,400,$$$719,300,$$$674,900,$$$659,000$