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steamer has 6 years of remaining life. If kept, the steamer will have de precierit expens 5 5 0 or he next 5 years (

steamer has 6 years of remaining life. If kept, the steamer will have de precierit expens 550 or he next 5 years (year 1 through year 5) and $500 for the sixth year. Its current book value is 84,250, and it can be sold on an Internet auction site for $2,000 at this time (at t=0). If the old steamer is not replaced, it can be sold for $300 at the end of 6w year.Gilbert is considering purchasing the Side Steamer 3000, a higher-end steamer, which costs $15,000 and has an estimated) useful life of 6 years. At the end of sixth year, it can be sold at S1,500. This steamer falls into the MARCRS 5-year class, so the applicable depreciation rates are 20.00%,32.00%,19.20%,11.52%,11.52%,5.76% for year through year 6 respectively. The new steamer is faster and allows for an output expansion, so sales would rise by 52,500 per year, the new machine's much greater efficiency would reduce the before-tax operating expense by $1,000 per year. To support greater sales, the new machine would require inventories to increase by $3,200, but accounts payable would simultaneously increase by $800. Gilbert's marginal federal-plus-state tax rate is 30%, and its WACC is 12%.Use the above information to answer questions 24-26.24. What is the initial incremental (net) cash flow at time =0(ACFo) if the new machine is purchasedand the old one is replaced?a.-$15,000b.-$17,400C.-$14,725d.-$15,255e.-$16,55025. What is the incremental (net) cash flow at time =3(ACFs) if the new machine is purchased and the old one is replaced?a. $3089.0b. $2743.4C.$3125.0d.$3665.0e.$2559.226. What is the incremental (net) cash flow at time =6(ACF6) if the new machine is purchased and the old one is replaced?. $3125.0b. $3665.0c. $2743.4d. $3240.0e. $5799.227. Should Gilbert replace the old wood steamer with the new one? a.Yesb. No

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