Replacement Analysis The Everly Equipment Company's flange lipping machine was purchased 5 years ago for 545,000. It had an expected life of 10 years when it was bought and its remaining depreciation is 54,500 per year for each year of its remaining life. As older fange-lippers are robust and useful machines, this one can be sold for $20,000 at the end of its useful life A new high-efficiency digital controlled flange-lipper can be purchased for 5140,000, including installation costs. During its 5-year life, it will reduce cash operating expenses by 535,000 per year, although it will not affect sales. At the end of its useful life, the high-eficiency machine estimated to be worthless. MACRS depreciation will be used, and the machine will be depreciated over its 3-year class life rather than its war economice so the applicable depreciation rates are 33.33%, 44.45% 14.81%, and 7.41% The old machine can be sold today for $40,000. The firm's tax rates 35%, and the appropriate cost of capital 16% a. If the new lange-lipper is purchased, what is the amount of the initial cash flow at Year Round your answer to the nearest dollar Cash outflow, if any, should be indicated by a minus sign $ 100000 b. What are the incremental net cash flows that will occur at the end of Years 1 through 5? Do not round intermediate calculations. Round your answers to the nearest dollar Cash outflows, if any, should be indicated by a minus sign CF 5 CF $ CF 5 5 CES $ What is the NPV of this project? Do not round intermediate calculations. Round your answer to the nearest wholt dollar. Negative value, if any, should be indicated by minus sign $ Should Everly replace the flange per Select