Recovery year	3 years	5 years	7 years	10 years
1	33%	20%	14%	10%
2	45%	32%	25%	18%
3	15%	19%	18%	14%
4	7%	12%	12%	12%
5		12%	9%	9%
6		5%	9%	8%
7			9%	7%
8			4%	6%
9				6%
10				6%
11				4%
Totals	100%	100%	100%	100%

help please! with part B & C, *show calculations please!

Relevant cash flowsNo terminal value Central Laundry and Cleaners is considering replacing an existing piece of machinery with a more sophisticated machine. The old machine was purchased 3 years ago at a cost of $45,900, and this amount was being depreciated under MACRS using a 5-year recovery period. The machine has 5 years of usable life remaining. The new machine that is being considered costs $77,000 and requires $4,500 in installation costs. The new machine would be depreciated under MACRS using a 5-year recovery period. The firm can currently sell the old machine for $54,700 without incurring any removal or cleanup costs. The firm is subject to a tax rate of 40%. The revenues and expenses (excluding depreciation and interest) associated with the new and the old machines for the next 5 years are given in the table B. (Table 5 contains the applicable MACRS depreciation percentages.) Note: The new machine will have no terminal value at the end of 5 years. a. Calculate the initial investment associated with replacement of the old machine by the new one. b. Determine the incremental operating cash inflows associated with the proposed replacement. (Note: Be sure to consider the depreciation in year 6.) c. Depict on a time line the relevant cash flows found in parts (a) and (b) associated with the proposed replacement decision. Cost of new asset $ 77,000 - X Data Table Installation costs 4,500 Total cost of new asset $ 81,500 Proceeds from sale of old asset $ (Click on the icon here in order to copy the contents of the data table below into a spreadsheet.) (54,700) 16,556 Tax on sale of old asset Total proceeds, sale of old asset $ (38,144) Initial investment 43,356 Year 1 2 New machine Expenses (excluding depreciation and interest) $719,900 719,900 719,900 719,900 719,900 Revenue $750,900 750,900 750,900 750,900 750,900 b. Determine the incremental operating cash inflows associated with the proposed replacement. Old machine Expenses (excluding depreciation and interest) $659,900 659,900 659,900 659,900 659,900 Revenue $674,500 676,500 680,500 678,500 674,500 3 Calculate the cash flows with the old machine below: (Round to the nearest dollar.) 4 5 Year 1 Profit before depreciation and taxes $ 45900 Print Done $ 22010 Depreciation Net profit before taxes $ Taxes $ Net profit after taxes $ $ Operating cash inflows