Please fill out D and E . Thank you!!

Hercules Exercise Equipment Co. purchased a computerized measuring device two years ago for $76,000. The equipment falls into the five-year category for MACRS depreciation and can currently be sold for $33,800. A new piece of equipment will cost $150,000. 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 1212. Use Appendix B for an approximate answer but calculate your final answer using the formula and financial calculator methods.

Year		Cash Savings
1		$	60,000
2			50,000
3			48,000
4			46,000
5			43,000
6			32,000

The firms tax rate is 25 percent and the cost of capital is 14 percent.

d. What is the cash inflow from the sale of the old equipment?

Cash inflow ___

e. What is the net cost of the new equipment? (Include the inflow from the sale of the old equipment.)

Net cost ____