The cash flows answer is above, but please help me understand how to calculate this and the formulas or how its set up. For example I cant figure out how to get depreciation.

Moms Cookies, Inc., is considering the purchase of a new cookie oven. The original cost of the old oven was $47,000; it is now five years old, and it has a current market value of $21,000. The old oven is being depreciated over a 10-year life toward a zero estimated salvage value on a straight-line basis, resulting in a current book value of $23,500 and an annual depreciation expense of $4,700. The old oven can be used for six more years but has no market value after its depreciable life is over. Management is contemplating the purchase of a new oven whose cost is $27,000 and whose estimated salvage value is zero. Expected before-tax cash savings from the new oven are $3,200 a year over its full MACRS depreciable life. Depreciation is computed using MACRS over a 5-year life, and the cost of capital is 10 percent. Assume a 30 percent tax rate.

2 Year Sales Variable Costs Depreciation on s5,400.00 New oven Foregone Depreciation on-4,700.00 Old Oven Less: incremental Depreciation 0 -3,200.00 -3,200.00 -3,200.00 -3,200.00 -3,200.00 -3,200.00 $8,640.00 $5, 184.00 3,110.40 $3,110.40 $1,440 4,700.00 4,700.00 4,700.00 -4,700.00 1,589.60 $4,789.60 1,436.88 $3,352.72 1,589.60 $1,763.12 -1,589.60 $4,789.60 1,436.88 $3,352.72 -1,589.60 $1,763.12 700.00 3,940.00 740.00 -222.00 518.00 3,940.00 3,422.00 484.00 1,555.20 EBIT Less: Taxes Net Income $2,500.00 750.00 1,750.00 700.00 $2,450.00 $2,716.00 814.80 $1,901.20 484.00 $2,385.20 $1,644.80 493.44 $1,151.36 1,555.20 $2,706.56 Plus:Depreciation OCF