Problem 12-31 (Algo) Replacement decision analysis [LO12-4] . I did all of them right I just need the last 2 please present value and net present value (don't know how to count) please help me I post this question 3 times and it still not correct.

Hercules Exercise Equipment Company purchased a computerized measuring device two years ago for $70,000. The equipment falls into the five-year category for MACRS depreciation and can currently be sold for $30,800. A new piece of equipment will cost $160,000. It also falls into the five-year category for MACRS depreciation. Assume the new equipment would provide the following stream of added cost savings for the next six years. Use Table 1212. Use Appendix B for an approximate answer but calculate your final answer using the formula and financial calculator methods.

Year Cash Savingsyear1$ 68,000 year2 60,000 year3 58,000 year4 56,000 year5 53,000 year6 42,000

The firms tax rate is 25 percent and the cost of capital is 11 percent.

a. What is the book value of the old equipment? 33,600

b. What is the tax loss on the sale of the old equipment?2800

c. What is the tax benefit from the sale? 700 D. What is the cash inflow from the sale of the old equipment? 31500 .

e.What is the net cost of the new equipment? (Include the inflow from the sale of the old equipment.) 128,500

f. Determine the depreciation schedule for the new equipment.

YearDepreciation BasePercentage DepreciationAnnual Depreciation1$160,0000.200$32,0002160,0000.32051,2003160,0000.19230,7204160,0000.11518,4005160,0000.11518,4006160,0000.0589,280 $160,000

g. Determine the depreciation schedule for the remaining years of the old equipment. YearDepreciation BasePercentage DepreciationAnnual Depreciation1$70,0000.192$13,440270,0000.1158,050370,0000.1158,050470,0000.0584,060

h. Determine the incremental depreciation between the old and new equipment and the related tax shield benefits. YearDepreciation on New EquipmentDepreciation on Old EquipmentIncremental DepreciationTax RateTax Shield Benefits1$32,000$13,440$18,5600.25$4,640251,2008,05043,1500.2510,788330,7208,05022,6700.255,668418,4004,06014,3400.253,585518,400 18,4000.254,60069,280 9,2800.252,320

i. Compute the aftertax benefits of the cost savings.

YearSavings(1 Tax Rate)Aftertax Savings1$68,0000.75$51,000260,0000.7545,000358,0000.7543,500456,0000.7542,000553,0000.7539,750642,0000.7531,500

j-1. Add the depreciation tax shield benefits and the aftertax cost savings to determine the total annual benefits. YearTax Shield Benefits from DepreciationAftertax Cost SavingsTotal Annual Benefits14,64051,000$55,650210,78845,00055,78835,66843,50049,16843,58542,00045,58554,60039,75044,35062,32031,50033,820

j-2. Compute the present value of the total annual benefits. present value ??

k-1. Compare the present value of the incremental benefits (j) to the net cost of the new equipment (e). net present value ??