The Bigbee Bottling Company is contemplating the replacement of one of its botting machines with a newer and more efficient one. The old machine has a book value of $625,000 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 firm in the industry for $295,000. The old machine is being depreciated by $125,000 per year, using the straight-line method. The new machine has a purchase price of $1,200,000, an estimated useful life and MACRS class life of 5 years, and an estimated salvage value of $125,000. The applicable depreciation rates are 20%, 32%, 19%, 12%, 11%, and 6%. It is expected to economize on electric power usage, labor, and repair costs, as well as to reduce the number of defective bottles. In total, an annual savings of $220,000 will be realized If the new machine is installed. The company's marginal tax rate 's 35%, and it has a 12% WACC. a. What initial cash outlay is required for the new machine? Round your answer to the nearest dollar. Negative amount should be indicated by a minus sign. answers to the nearest dollar b. Calculate the annual depreciation allowances for both machines and compute the change in the annual depreciation expense if the replacement is made. Round your Year Depreciation Depreciation Change in Allowance, Allowance, Old Depreciation New 1 $ $ $ 2 3 4 5 c. What are the incremental net cash flows in Years through 57 Round your answers to the nearest dollar Year 1 Year 2 Year 3 Year 4 Year 5 $ d. Should the firm purchase the new machine -Select