please solve each part of this one question

4. Analysis of a replacemaent project At turnes farms will need to decide if they want to continue to use their cilfent equpenent or replace the equipment with newer equipment. The company will need to do replocement arabros to determine which option is the best financial deckion for the compory. Price Co. is considering replacing an exasting piece of equipment. The project involves the following: - The new equpment will have a cost of $9,000,000, and it is eligible for 100% bonus depreciation so it wili be fully depreciated at t=0. - The old machine was purchased before the new tax law, so it is being depregated on a straigh-line basis. It has a book value of $200,000 (at year 0 ) and four more years of depreciation lett ($50,000 per year). - The new equipment wal have o salvage value of $0 at the end of the project's life (year 6 ). The old machune has a current solvage value (at vear 0 ) of $300,000. - Replacing the old machine will require an investment in net operating workang coputal (wowc) of $45,000 that will be recowered at the end of the project's life (year 6 ). - The new machine is more efficient, so the firm's incremental eainings before interest and taxes (tBIT) will uncrease by a total of $400,000 in each of the next six years (vears 16 ). Hint: This value represents the difference between the revenues and operating costs (including depeccation expense) generated using the new equipment and that earned usang the old equipment. - The project's cost of capital is 13%. - The company's annual tax rate is 25%. The net present value (NPV) of this replacement project is: $4,002,226 $4,535,857 $5,336,302 $6,136,747