Please help with the following problem, I have been struggling with this one all day. Your hopes will be greatly appreciated it. All information is given through the three pictures provided. Please let me know if you need any additional information you should not, but please let me know. Answer the question FULLY. Thanks again. The first pic is the question, the second pic is the chart that is the first part of question one, and the last pic is the template page that needs to be filled out.

Big B Coffee Roaster is considering replacing one of its existing machines with a new, more automated and efficient machine. The old machine was bought five years ago for $93,750. It is being depreciated on a straight-line basis over a fifteen-year life. The machine could be sold today at $20,000. The new machine will cost $96,000 and its depreciable life is ten years with a salvage value of $13,000. However, in accordance with U.S. tax law, the asset will be depreciated down to zero over the ten years via the straight-line method. In 2009, Big B's existing coffee roasting machine accounted for annual revenues (sales) of $50,000 and had annual operating costs of $25,000. The new machine will increase this revenue to $72,000 per year. The machine will also increase operating costs by $3,000 per year. Finally, the new machine requires that the company raises its inventory of green coffee beans by $4,000. The cost of capital for Big B is 14% and the corporate tax rate is 40%. Big B has profitable ongoing operation that can be used to offset losses. Should Big B replace the old machine with the new one? QUESTION 1 (2 POINTS): On the first worksheet of the template, identify the relevant and irrelevant cash flows in this problem and further categorize the relevant cash flows into three categories: a) Initial Outlay, b) After-tax annual cash flows, and c) Terminal Cash Flow. On the second worksheet of the template file complete the data section, and calculate the initial outlay, annual ATCF and terminal cash flow. Then, calculate the cash flows each year (years 0-10), complete the timeline table and calculate the NPV and IRR. Should the project be accepted? Data Section Original Price of Old Machine Original Life of Old Machine Current Life of Old Machine Depreciation per year (old Machine) Original Salvage (old Machine) Current Book Value of old Machine Current Salvage (old Machine) Price of New Machine Original/Current Life of New Machine Depreciation per year (new Machine) Book/Salvage Value of new machine after 10 ye Expected Sale price of new machine after 10 yea Increase in Revenues Increase in Operating Costs Inventory Increase Cost of Capital Tax Rate 93,750.00 \begin{tabular}{lr} Tax Rate & 0.40 \\ \hline \end{tabular} **You might not have to use all numbers from the data section Initial Outlay Calculation Annual ATCF Calculation Terminal Cash Flow Calculation