(Related to Checkpoint 12.2) (Replacement project cash flows) Madrino's Wholesale Fruit Company focated in McAllon, Toxas is contidening the purchure of a now fleet of tractors to be used in tie delivery of frults and vegetables grown in the Rio-Grinde Valley of Texas. If it goes through with the pischase. it wil spend 5320,000 on eight rigs. The new trucks wit bo kept loe 5 years, daring which time they wil be depreciated toward a 530,000 stilvago valio tining stratghit-ine depreciation. The rigs are expected to have a market value in 5 yoars equal to ther salvape walue. The new tractions will be used to replace the conpany's dider fleet of eight trucks which aye fully deptecithed but oan be soid for an estimated 516.000 (because the trackors have a currept book valie of zero, the seling frice is fully. existing fleet of tractort uses $180,000 per year in diesel fuel, whereas the naw, more elficient fleet wil use only $160,000. In adidition, the new fient wil be ouvered a. What are the dillerential oporaling cash flow savings per year during years 1 through 5 for the new floot? b. Yasat is the initial cash outlay requered to replace the oxisting flet with the newor tractort? c. What doen the timeline for the replacement project cash fows for years o buough 5 look like? d. If Madrano requres a dreocint rate of 14 percent for new investinents, should the fleet bu roplaced