The Bigbee Bottling Company is contemplating the replacement of one of its bottling machines with a newer and more efficient one. The old machine has a book value of $575,000 and a remaining useful life of 5 years. The firm does not expect to realize any return from scrapping the old machine in 5 years, but it can sell it now to another tim in the industry for $250,000. The old machine is being depreciated by $115,000 per year, using the straight-line method. The new machine has a purchase price of $1,200,000, an estimated useful life and MACRS classe or 5 years, and an estimated salvage value of $120,000. The applicable depreciation rates are 20%, 32%, 19%, 12%, 11%, and 6%. It is expected to economie on electric power usage, labor, and repair costs, as well as to reduce the number of defective bottles. In total, an annual savings of $215,000 will be realized the new machine is installed. The company's marginal tax rate is 35%, and it has a 12% WACC 6. What initial cash outlay is required for the new machine? Cash outflow should be indicated by a minus sign. Round your answer to the nearest dollar b. Calculate the annual depreciation allowances for both machines and compute the change in the annual depreciation expense of the replacement is made Depreciation allowances should be entered as positive values, Negative change values, if any, should be indicated by a minus sign. Round your answers to the nearest dollar Year Depreciation Depreciation Change in Allowance, Allowance, Depreciation New Old 25 c. What are the incremental net cash flows in Years 1 through 57 Round your answers to the nearest dollar Year 1 Year 2 Year 3 Year 4 Year 5