Please show work and finish entire question. Do not do in Excel.

The Everly Equipment Companys flange-lipping machine was purchased 5 years ago for $55,000. It had an expected life of 10 years when it was bought and its remaining depreciation is $5,500 per year for each year of its remaining life. As the older flange-lippers are robust and useful machines, it can be sold for $20,000 at the end of its useful life. A new high-efficiency, digital-controlled flange-lipper can be purchased for $120,000, including installation costs. During its 5-year life, it will reduce cash operating expenses by $30,000 per year, although it will not affect sales. At the end of its useful life, the highefficiency machine is estimated to be worthless. MACRS depreciation will be used, and the machine will be depreciated over its 3-year class life rather than its 5-year economic life, so the applicable depreciation rates are 33.33%, 44.45%, 14.81%, and 7.41%. The old machine can be sold today for $35,000. The firms tax rate is 35%, and the appropriate WACC is 16%.

a. If the new flange-lipper is purchased, what is the amount of the initial cash flow at Year 0?

b. What are the incremental net cash flows that will occur at the end of Years 1 through 5?

c. What is the NPV of this project? Should Everly replace the flange-lipper?