Replacement Analysis DeYoung Entertainment Enterprises is consldering replacing the latex molding machine it uses to fabricate rubber chickens with a newer, more efficient model. The old machine has a book value of $500,000 and a remaining useful te of $ years. The current machine would be worn out and worthless in 5 years, but DeYoung can sell it now to a Haloween mask manufacturer for $150,000, The old machine is being depreciated by $100,000 per year for each year of its remaining life. If Deyoung doesnt replace the old machine, it will have no salvage value at the end of its useful life. The new machine has a purchase price of $725,000, an estimated uscful life and MACRS class life of 5 years, and an estimated salvage value of $105,000, The applicable depreclation rates are 20.00%,32.00%,19.20%,11.52%,11.52%, and 5.76%. Being highly efficient, it is expected to economize on electric power usage, labor, and repair costs, and, most importantly, to reduce the number of defective chickens. In total, an annual savings of 5210,000 wilt be realized if the new machine is installed. The company's marginal tax rate is 25% and the project cost of capital is 16%. a. What is the initial net cash flow if the new machine is purchased and the old one is replaced? Round your answer to the nearest doilar. Cash outflow, if any, should be indicated by a minus sign. $ b. What is the incremental depreciation tax shield (l.e., the change taves due to the change in depreciation expenses) if the replacement is made? (Hint: Fins: calculate the annual depreciation expense for the new machine and compare it to the depreciation on the old machine.) Do not round intermediate calculations. Round your answers to the nearest dollar. Negative values, if any, should be indicated by a minus vign. C. What is the after tas salvage value at Year 57 Do not round intermediate calculations. Round your answer to the nearest dolar. Negative value, if any, should be indicated by a minus sign. c. What is the after-tax salvage value at Year 5 ? Do not round intermediste calculations. Round your answer to the nearest dollar. Negative value, if any, shoul be indicated by a minus slgn. 5. d. What are the total incremental project cash flows in Years 0 through 5 ? What is the NPV? Do not round intermediate calculations. Round your answers to the nearest dollar, Negative values, if any, should be indicated by a minus sign