please use excel and show work

TEI LLC, a manufacturer of ski apparel, is considering replacing an existing piece of equipment with a more sophisticated machine. The following information is given acts Proposed Machine $65.000 Existing Machine Cost Installed Depreciation Current Market Value Useful Life $50,000 2 years ago MACRS 3-year $15,000 1 year remainin Cost Installation Depreciation 5,000 MACRS 3-year Useful Life 3 years total Earnings before Depreciation and Taxes Existing Machine Amount $70.000 $65,000 $60,000 Proposed Machine Year Year Amount S85,000 $85,000 $85,000 2 3 2 3 The firm pays 40 percent taxes on ordinary income and capital gains. The existing machine is expected to have no market (salvage) value after three more years of use, but proper disposal will cost $5,000 before tax. Managers expect the new machine to have a market value of $20,000 after three years of use. There is no change in working capital required for the project. Calculate the following for each machine: a. Depreciation b. All incremental after-tax cash flows (investment and operating) c. The after-tax terminal value d. The NPV and IRR if the company's WACC is 9.4%. Should they replace the old machine