Rockyford Company must replace some machinery that has zero book value and a curtent market value of $1,800. One possibility is to invest in new machinery costing $40,000. This new machinery woud produce estimated annual pretax cash operating savngs of $12,500. Assume the new machine wil havo a useful fifo of 4 years and depreciatien of $10,000 each year for book and tax purposes. it wil have no salvage value at the end of 4 years. The investment in this new mach inery would require an additional $3,000 invertment of net working capital, (Assume that when the old machine was purchased, the incremental not working cop tal roquirod at the time was $0 ) If Rockylord accepts this investment proposat, the disposal of the old machinery and the investment in the new one wil occur on Decomber 31 of this yeak. The cash llows from the investment are expected to occur over a fout yeat period: Rockylord is subject to a 40 s income tax rate for all ordinary income and capital gains and has a 10 ' weighted-average after-tax cost of capital Al oporating and tas cash flows are assumed to occur ot yearend. (For Parts 2 and 3 , use the relevant table from Aobend: C-Tibles or Tabie 2) Complete this question by entering your answers in the tabs below. What is the aftertax cash flow ansing from disposing of the old machinery? Complete this question by entering your answers in the tabs below. What is the present value of the after-tax cash fows for the pext a years attributable to the cash operating sovingu? (Reonid your answer to nearest whole dollar amount.) What is the present value of the tax-shield effect of depreciation expense for year 1