Relevant information: Vinyard Corporation is considering a replacement of a tool machinery with a new one which would increase the operating capacity of the firm. The new machine would cost $225,000 and needs an installation cost of $25,000 and will be depreciated by MACRS 7 years. The old machine was purchased three years ago at a cost of $175,000, and this machine was being depreciated under MACRS- 5 year recovery period. The machine has a useful life remaining of three more years. Managers of the firm think that they could sell the old machine for $150,000. The firm is subject to 21% tax rate. Revenues for the old machine was $400,000 each year, and expenses (excluding depreciation and interest) are 60% of estimated revenues. Also, projected new machine revenues are estimated at $650,000 each year, and expenses for this machine are projected at 65% of estimated revenues. New machine are expected to be use for seven years. a. Determine the initial Investment for the replacement 10 points b. Determine the Operating cash flows associated with the new machine 9 points c. Determine the Operating cash flows associated with the old machine being replaced 9 points d. Determine the Incremental After Tax Cash flows 6 points