QUESTION 26 5 points Saved Table 11.4 Degnan Dance Company, Inc, a manufacturer of dance and exercise apparel, is considering replacing an existing plece of equipment with a more sophisticated machine. The following information is given. Facts Editing Machine Proposed Machine Cost - $100,000 Cost - $150,000 Purchased 2 years ago Installation - $20,000 Deprecation using MACRS Over Deprecation-the MACRS A 5-year recover schedule 5-year recovery schedule will be used Current market value - $105,000 Five year usable life remaining Five year umable life expected Earnings before Depreciation and Texel Existing Machine Proposed Machine Year 1 $160,000 Year 1$70,000 150,000 2 170,000 140,000 170,000 140,000 170,000 140,000 170,000 2 3 4 5 3 4 5 The firm pays 40 percent taxes on ordinary income and capital gains. Summarize the incremental after-tax cash flow (relevant cash flows) for years to throught=5. (See Table 11.4) For the toolbar, press ALT F10(PC) or ALT+FN+F10 (Mac)