The Bigbee Bottling Company is contemplating the replacement of one of es botding machines with a newer and more ethieient one. The old inachine was purchased prior to the TciA, has a book value of $650,000, and a remeining useful life of 5 years. The firm deps not expect to realize any return from scrapping the old machine in 5 years, but it can seil 2 now to another firm in the industry for $265,000. The old machine is being depreciated by $130,000 per year, using the stralght-line method. The new machine has a purchase price of $1,150,000, an estimated useful ife of 5 - years, and an estimated salvage value of $120,000. The new machine is eligible for 100\% bonis depreolation at the time of purchase. tr is expected to economize on electric power usage, labor, and repair costs, as well as to reduce the number of defective botdles, in tocal, an anhual savitgi before taxes of $225,000 will be reslized if the new machine is installed, The company's margingl tax rate is 25%, and it has a 12% whCe. a. What initial cash outlay is required for the new machine after bonus depredation is considered cash outfow should be indicated by a minus sign. Aound your answer to the neartst dollar 5 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 answen to the nearest dotar