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please help with the question (a)-(e) except excel part! Thank you The Boston Bottling Company is contemplating the replacement of one of its bottling machines

please help with the question (a)-(e) except excel part!
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The Boston Bottling Company is contemplating the replacement of one of its bottling machines with a newer and $600,000 and a remaining useful life of 5 years. The firm does in 5 years, but it can sell it now to another firm in the industry more efficient one. The old machine has a book value of not expect to realize any return from scrapping the old machine for $265,000. The old machine is being depreciated by $120,000 per year, using the straight-line method. The new machine has a purchase price of S1,175,000, an estimated useful life and MACRS class life of 5 years, and arn estimated salvage value of S145,000. The applicable depreciation rates are 20%, 32%, 19%, 12%, 1 1%, and 6%. It is expected to economize on electric power usage, labor, and repair costs, as well as to reduce the number of defective bottles. In total, an annual savings of $255,000 will be realized if the new machine is installed. The company's marginal tax rate is 35% and it has 12% WACC. a. What initial cash outlay is required for the new machine? b. Calculate the annual depreciation allowances for both machines and compute the change in annual depreciation expense if the replacement is made. c. What are the incremental cash flows in years 1 through 5? d. Should the firm purchase the new machine? Support your answer with detailed explanation e. In general, how would each of the following factors affect the investment decision, and how should each be treated? i. The expected life of the existing machine decreases. ii. The WACC is not constant but is increasing as Boston Bottling Company adds more projects into its capital budget for the year Financial Decision Making and Value Creation Page 1

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