The Bigbee Botting Company is contemplating the replocement of one of its botting machines with a newer and more efficient one. The old machine was purchased prior to the TClA, has a book value of 5650,000 , and a remaining useful life of 5 years. The firm does not expect to realize any retum from serapping the old machine in 5 years, but it can sell it now to another firm in the industry for $235,000. The old machine is being depreciated by $130,000 per yeac, using the straight-line method. The new machine has a purchase price of $1,100,000, an estimated useful life of 5 years, and an estimated salvage value of $160, 000 . The new machine is eligible for 100% bonus depreciation at the time of purchase. It is expected to economize on electric power usage, labor, and repalr costs, as well as to reduce the number of defective bottles. In total, an annual savings before taxes of $240,000 will be realized if the new machine is instalied, The company's marginal tax rate is 25%, and it has a 12% WACC. a. What initial cash outiay is required for the new machine after bonus depreciation is considered? Cash outhow should be indicated by a minus sign. Round your answer to the nearest dollar, 4 b. Calculate the change in the annual depreciation expense if the replacement is made. Negative change values, if any, should be indicated by a minus sign. Round your answers to the nearest doliar. c. What are the incremental cash fows in Years 1 through 5 ? Round your answers to the nearest doliar: Year 1 Year 2 Year 3 Year 4 Year 5 4 5 $ $ 15