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please assist (Related to Checkpoint 12.2 Replacement pro ect cash flowB) ledrano's Wholesale Fruit Company ocated in Mc en Texas is considering tne purchase o

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(Related to Checkpoint 12.2 Replacement pro ect cash flowB) ledrano's Wholesale Fruit Company ocated in Mc en Texas is considering tne purchase o a new feet of tractors to be used in the delivery of uits and vegetables grown in thRio Orende ValleyoTexas.il oe Urough with the purthase, il will spend $360,000 neight iys. The rnew lucks will be kepl o 5 years, during which lire Uhey will e deprecialed lward a 41,000 savge value usin strigh-line deprecialion. The ris are expeuled to have a market value in years equa to their salvage value The new tractors will be used to replace the companye leet at eight trucks which are tully deprecisted bit can be sold tor an etimated $2 ia erause the trarios havea current book value of zero, the selling price is fully taxable at the firm's 29 percent tax ate. The existng trector fleet is expectad to be useable for5 more years after which time they will have no salvage value. The existng fleet of tractors uses $220,000 per year in diesel fuel wereas the ew mre efficienst will use only S100,000. In addilion, the new feet will be covered under warranly, so the iaintena custs per year are expecled o be ony S10,000 compaed lo $30,000 for the exisling Neet gsd a. What are the diterential operating cash flow savings per year during years 1 through 5 for the new neon b. What is the intisl cash outlay required to replace the exsting fleet with the newer tractors? c. What does the timeline for the replacement proiect cash flows for Years trough 5 look like? d. If Madrano requires a discount fate ofpercent for new investments, should the fleet be replaced a. The ditterential operating cash tw savings per year during years 1 through 4 r the new tieet areRound to the nesrest dollar) Enter your answer in the answer box and then click Check Answer. Clear All Check Answer remalning

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