Replacement Analysis The Everly liquipment Company's fange-lioping machine was purchased 5 years ago for $50,000. It had an expected tre of 10 years when it was bought, and its remaining depreciation is $5,000 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 fe A new highetency, digital-controlled flange per can be purchased for 5100,000, including installation couts. During its 5-year fe, it will reduce cath operating expenses by $35,000 per year, although it will not affect sales. The new equipment will have zero salvage value, MACRS depreciation will be used, and the machine will be depreciated over its year class life rather than its 5-year economic life, so the applicable depreciation rates are 33.33%, 14.456, 14.019 and 2.41% (There will be no depreciation in its sth year since it will already be fully depreciated.), The old machine can be sold today for $40,000. The firm's tax rate is 25%, and the appropriate cost of capitale 10% at the new flange-lipper is purchased, what is the amount of the initial cash flow at Year or (hvit: you need to calculate the book value of the old machine so you can calculate its after-tax salvage value.) Round your answer to the nearest dollar Cash outflow, Iany, should be indicated by a minus sign. 5 b. What are the incremental net cash flows that will occur at the end of Years 1 through 57 Hint Be sure to also include the annual depreciation tax savings and the after tax opportunity cost of not selling the old machine at Year SI Do not round Intermediate calculations. Round your answers to the nearest dollar. Cash outflows, it any should be Indicated by a minus sign CFI $ CF $ CF $ CFA $ CFS $ c. What is the NPV of this project? Do not round Intermediate calculations. Round your answer to the nearest dollar. Negative value, if any, should be indicated by a minus sign $ Should Everly replace the flange-lipper? Baleel NE