Please help me do part h & J$-1$ Chegg professionals. Thank you for your service! $<3$

Hercules Exercise Equipment Co$.$ purchased a computerized measuring device two years ago for $$96,000.$ The equipment falls into the five$-$year category for MACRS depreciation and can currently be sold for $$43,800.$

A new piece of equipment will cost $$210,000.$ 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

$1$ $$70,000$

$260,000$

$358,000$

$456,000$

$553,000$

$642,000$

The firm$$s tax rate is $25$ percent and the cost of capital is $11$ percent.

a$.$ What is the book value of the old equipment?$($Do not round intermediate calculations and round your answer to the nearest whole dollar.$)$

Book value $$46,080$

b$.$ What is the tax loss on the sale of the old equipment?$($Do not round intermediate calculations and round your answer to the nearest whole dollar.$)$

Tax loss $$2,280$

c$.$ What is the tax benefit from the sale?$($Do not round intermediate calculations and round your answer to the nearest whole dollar.$)$

Tax benefit $$570$

d$.$ What is the cash inflow from the sale of the old equipment?$($Do not round intermediate calculations and round your answer to the nearest whole dollar.$)$

Cash inflow $$44,370$

e$.$ What is the net cost of the new equipment? $($Include the inflow from the sale of the old equipment.$)($Do not round intermediate calculations and round your answer to the nearest whole dollar.$)$

Net cost $$165,630$

f$.$ Determine the depreciation schedule for the new equipment.$($Round the depreciation base and annual depreciation answers to the nearest whole dollar. Round the percentage depreciation factors to $3$ decimal places.$)$

Year Depreciation

Base Percentage

Depreciation Annual

Depreciation

$1$ $$210,0000\mathrm{.}200$ $$42,000$

$2210,0000\mathrm{.}32067,200$

$3210,0000\mathrm{.}19240,320$

$4210,0000\mathrm{.}11524,150$

$5210,0000\mathrm{.}11524,150$

$6210,0000\mathrm{.}05812,180$

$$210,000$

g$.$ Determine the depreciation schedule for the remaining years of the old equipment.$($Round the depreciation base and annual depreciation answers to the nearest whole dollar. Round the percentage depreciation factors to $3$ decimal places.$)$

Year Depreciation

Base Percentage

Depreciation Annual

Depreciation

$1$ $$96,0000\mathrm{.}192$ $$18,432$

$2$ $$96,0000\mathrm{.}11511,040$

$3$ $$96,0000\mathrm{.}11511,040$

$4$ $$96,0000\mathrm{.}0585,568$

h$.$ Determine the incremental depreciation between the old and new equipment and the related tax shield benefits.$($Enter the tax rate as a decimal rounded to $2$ decimal places. Round all other answers to the nearest whole dollar.$)$

Year Depreciation

on New

Equipment Depreciation

on Old

Equipment Incremental

Depreciation Tax Rate Tax Shield

Benefits

$1$ $$42,000$ $$18,432$ $$23,5680\mathrm{.}25$ $$5,892$

$267,200?56,1410\mathrm{.}2514,035$

$340,320?29,2610\mathrm{.}257,315$

$4???0\mathrm{.}25?$

$5?0?0\mathrm{.}25?$

$6?0?0\mathrm{.}25?$

i$.$ Compute the aftertax benefits of the cost savings.$($Enter the aftertax factor as a decimal rounded to $2$ decimal places. Round all other answers to the nearest whole dollar.$)$

Year Savings $(1$ Tax Rate$)$ Aftertax

Savings

$1$ $$70,0000\mathrm{.}75$ $$52,500$

$260,0000\mathrm{.}7545,000$

$358,0000\mathrm{.}7543,500$

$456,0000\mathrm{.}7542,000$

$553,0000\mathrm{.}7539,750$

$642,0000\mathrm{.}7531,500$

j$-1.$ Add the depreciation tax shield benefits and the aftertax cost savings to determine the total annual benefits.$($Do not round intermediate calculations and round your answers to the nearest whole dollar.$)$

Year Tax Shield

Benefits from

Depreciation Aftertax

Cost Savings Total Annual

Benefits

$15,892$ $$52500$ $$58292$

$214,0354500059035$

$37,3154350050815$

$4?4200046666$

$5?3975045798$

$6?3150034524$

j$-2.$ Compute the present value of the total annual benefits.$($Do not round intermediate calculations and round your answer to the nearest whole dollar.$)$

Total annual benefits $$214052$

k$-1.$ Compare the present value of the incremental benefits$($j$)$to the net cost of the new equipment$($e$).($Do not round intermediate calculations. Negative amount should be indicated by a minus sign. Round your answer to the nearest whole dollar.$)$

Net present value $$48422$

k$-2.$ Should the replacement be undertaken?

YES YES IS CORRECT ANSWER

NO