Save Submit Assignme Questions Problem 12.19 (Replacement Analysis) Qur 7. . Check My Work B eBook 10. 11 The Darlington Equipment Company purchased a machine 5 years ago, prior to the TCJA, at a cost of 595,000. The machine had an expected life of 10 years at the time of purchase, and it is being depreciated by the straight-line method by $9,500 per year. If the replaced, it can be sold for $5,000 at the end of its useful life. A new machine can be purchased for $150,000, including Installation costs. During its 5-year life, it will reduce cash operating expenses by $50,000 per year. Sales are not expected to change. At the end of its useful life, the machine is estimated to be worthless. machine is eligible for 100% bonus depreciation at the time of purchase. The old machine can be sold today for $60,000. The firm's tax rate is 25%. The appropriate WACC is 9%. a. If the new machine is purchased, what is the amount of the initial cash flow at Year Oatter bonus depreciation is considered? Cash outflow should be indicated by a minus sign. Round your answer to the nearest dollar b. What are the incremental cash flows that will occur at the end of Years 1 through 57 Round your answers to the nearest dollar. Year 1 Year 2 Year 3 Year 4 Year $ $ $ c. What is the NPV of this project? Do not round intermediate calculations. Round your answer to the nearest cent. Should Darlington replace the old machine? Select Check My Work Olen kry Problem 12.19 (Replacement Analysis) Save Submit Assignme