Price Co. is considering replacing an existing piece of equipment. The project irvolves the following: - The new equipment will have a cost of 51,800,000, and it is eligitile for 100 s bonus deprecation so it will be fully deprecitted at: t=0. - The old machine was purchased before the new tax law, so it is being depreclated on a straight-line basis. It has a book value of 5200,000 (it year 0) and four more years of depreciation left ( 550,000 per yeor). - The new equipment will have a salvage value of 50 at the end of the project's life (yeir 6 ). The old machine has a current salvage value (at year 0 ) of $300,000. - Replaaing the old machine will require an investment in net operating working copital (NOWC) of S45,000 that wil be recovered at the end of the project's life (year 6 ). - The new machine is more efficient, so the firms incremental eamngs before interest and taxes (EBIT) will increase by a total of $300,000 in each of the next sox years (years 1-6). Hint:This value represents the difference between the revenues and operating costs (induding deprecation expense) generated using the new equipment and that earned using the old equipment. - The project's cost of capital is 1396. - The company's annual tax rate is 25%. Complete the following tabie and compute the incremental cass flows associated with the replacement of the old equapment with the new equapment. Complete the following table and corpute the incremental cash flows associated with the replacement of the old equipment with the new equiprnent. The net piresent value (NPV) of this replacement project is: 5236,1185271,5365177,088$200,700