Save Homework: HW8 Chapter 12 Score: 0 of 16 pts X P12-32 (algorithmic) core HW Score: 39.39%, 26 of 66 pt Question Help (Replacement project cash flows) The Louisiana Land and Cattle Company LLCC) is one of the largest cattle buyers in the country. They have buyers at all the major cattle actions throughout the southeastern part of the US who buy on the company's behall and then have the cattleshipped to Super Springs, Louisiana, where they are sorted by weight and type before shipping off to food lots in the Midwest. The company has been considering the replacement of their actor-trailer rigs with a newer, more fuel efficient feet for some time, and a local Peterbilt dealer has approached the company with a proposal. The proposal would call for the purchase of 10 new rigs at a cost of $70,000 each. The rigs would be depreciated toward a salvage value of $38,000 over a period of 5 years. ILLECC purchase the rigs, it will seltsisting foot of 10 g o the Peterbilt dealer for their current book value of $23.000 per unit. The existing fleet will be fully deprecated in 1 more year but is expected to be serviceable for more years, at which time they would be worth only $5.000 per unit as scrap The new Teet of trucks is much more fuel efficient and will require only $170.000 inful costs compared to $280,000 for the existing fleet. In addition, the new feet of trucks will require minimal maintenance over the next 5 years, equal to an estimated $110,000 compared to almost 370,000 per year that is currently being spent to keep the older et running a. What are the differential operating cash flow savings per year during years through 5 for the new feet? The firm pays tas at a marginal tax rate of 29 percent b. What is the initial cash outlay required to replace the existing tool with newrigs? c. Sketch a timeline for the replacement project cash flows for years through 5 d. ILL&CC requires a discount rate of percent for new investments, should the feet be replaced a. Find the differential operating cash flow savings per year during years 1 through 4 for the new feet (Round to the nearest dollar Cash Flow Value Year 1 $ 234 306 Year 2 $ 301.096 Enter your answer in the answer box and then click Check Answer 3 parts 3 ming Clear All Check Answer TUITIVUIN. TIVVO Ullapici 12 Score: 0 of 16 pts X P12-32 (algorithmic) (Replacement project cash flows) The Louisiana Land and Cattle Company (L southeastern part of the U.S. who buy on the company's behalf and then have the the Midwest. The company has been considering the replacement of their tractor with a proposal. The proposal would call for the purchase of 10 new rigs at a cost purchases the rigs, it will sell its existing fleet of 10 rigs to the Peterbilt dealer for th serviceable for 5 more years, at which time they would be worth only $5.000 per ui The new fleet of trucks is much more fuel-efficient and will require only $170,000 in over the next 5 years, equal to an estimated $110,000 compared to almost $370,00 a. What are the differential operating cash flow savings per year during years 1 thr b. What is the initial cash outlay required to replace the existing fleet with new rigs c. Sketch a timeline for the replacement project cash flows for years 0 through 5. d. If LL&CC requires a discount rate of 9 percent for new investments, should the fi Cash Flow Value Year 1 $ 234,396 Year 2 $ 301,096 Year 3 $ 301,096 Year 4 $ 301,096 Enter your answer in the answer box and then click Check Answer. 2 parts remaining Finance for Engineers Fall 2019 Homework: HW8 Chapter 12 Score: 0 of 16 pts X P12-32 (algorithmic) (Replacement project cash flows) The Louisiana Land and Cattle Company (LL&CC) is one o southeastern part of the U.S. who buy on the company's behalf and then have the cattle shipped the Midwest. The company has been considering the replacement of their tractor-trailer rigs with with a proposal. The proposal would call for the purchase of 10 new rigs at a cost of $70,000 eac purchases the rigs, it will sell its existing fleet of 10 rigs to the Peterbilt dealer for their current boo serviceable for 5 more years, at which time they would be worth only $5,000 per unit as scrap. The new fleet of trucks is much more fuel-efficient and will require only $170,000 in fuel costs com over the next 5 years, equal to an estimated $110,000 compared to almost $370,000 per year tha a. What are the differential operating cash flow savings per year during years 1 through 5 for the b. What is the initial cash outlay required to replace the existing fleet with new rigs? c. Sketch a timeline for the replacement project cash flows for years 0 through 5. d. If LL&CC requires a discount rate of 9 percent for new investments, should the fleet be replace Year 2 Year 3 Year 4 $ 301,096 $ 301,096 $ 301,096 The terminal cash flow of the new fleet in year 5 is $ . (Round to the nearest dollar.) Enter your answer in the answer box and then click Check Answer. 3 parts remaining Save Homework: HW8 Chapter 12 Score: 0 of 16 pts X P12-32 (algorithmic) 1 of 4 (4 complete) HW Score: 39.39%, 26 of 66 pts Question Help (Replacement project cash flows) The Louisiana Land and Cattle Company (LLECC) is one of the largest cattle buyers in the country. They have buyers at all the major cattle auctions throughout the southeastern part of the US who buy on the company's behalf and then have the cattle shipped to Sulphor Springs, Louisiana, where they are sorted by weight and type before shipping off to feed lots in the Midwest. The company has been considering the replacement of their tractor-trailers with a newer, more fuel efficient feed for some time, and a local Peterbit dealer has approached the company with a proposal. The proposal would call for the purchase of 10 now rigs at a cost of $70,000 each. Thengs would be depreciated toward a salvage value of $38,000 over a period of 5 years. If LL&CC purchases the rigs, it will sell its existing fleet of 10 rigs to the Peterbilder for their current book value of $23,000 per unit. The existing feet will be fully deprecated in 1 more year but is expected to be serviceable for more years, at which time they would be worth only $5,000 per unit as scrap The new foot of trucks is much more fuel- econd and will require only $170,000 in fuel costs compared to $280,000 for the existing tool. In addition, the new foot of trucks will require minimal maintenance over the next 5 years, equal to an estimated $110.000 compared to almost $370,000 per year that is currently being spent to keep the older fleet running a. What are the differential operating cash flow savings per year during years 1 through for the new feet? The firm pays fames at a marginal tax rate of 29 percent. b. What is the initial cash outlay required to replace the existing fleet with new ngs? C. Sketch a timeline for the replacement project cash flows for years through 5. d. If LL&CC requires a discount rate of 9 percent for new investments, should the feet be replaced Year 2 Year 3 $ 301,098 $ 301,096 $ 301.096 Year 4 The terminal cash flow of the new feet in year 5 is (Round to the nearest dollar.) Enter your answer in the answer box and then click Check Answer s remaining Clear All Check