$*$Note: These amounts are used for depreciation calculations.

Assume further that Mendoza is subject to a $30\%$ income tax, both for ordinary income and gains$/$losses associated with disposal of

machinery, and that all cash flows occur at the end of the year, except for the initial investment. Assume that straight$-$line depreciation

is used for tax purposes and that any tax associated with the disposal of machinery occurs at the same time of the related transaction.

Required:

Determine relevant cash flows $($after$-$tax$)$ at time of purchase of the new machine $($i$.$e$.,$ time $0$: January $1,2019).$

Determine the relevant $($after$-$tax$)$ cash inflow each year of project operation $($i$.$e$.,$ at the end of each of years $1$ through $5).$

Determine the relevant $($after$-$tax$)$ cash inflow at the end of the project's life $($i$.$e$.,$ at the project's disposal time, December $31,2023).$

Determine the undiscounted net cash flow $($after tax$)$ for the new machine and determine whether on this basis the old machine

should be replaced.

$($For all requirements, do not round intermediate calculations. round your answers to the nearest whole dollar amount.$)$