The Chang Company is considering the purchase of a new machine to replace an obsolete one. The machine being used for the operation has a book value and a market value of zero. However, the machine is in good working order and will last at least another 5 years. The proposed replacement machine will perform the operation so much more efficiently that Chang's engineers estimate that it will produce after-tax cash flows (labor savings and depreciation) of $10,300 per year. The new machine will cost $30,900 delivered and installed, and its economic life is estimated to be 5 years. It has zero salvage value. The firm's WACC is 5.60%, and its marginal tax rate is 40%. Calculate the NPV of the replacement analysis? $26,318 $74,764 $12,964 $4,582 $43,864 What is the initial investment outlay for the spectrometer, that is, what is the Year 0 project cash flow? $11,800 $10,300 $11,900 $11,100 $11,000 What is the project's Free Cash Flow in Year 1 ? $5,065 $1,402 $6,000 $3,663 $2,337 What is the project's Free Cash Flow in Year 2? $4,995$603$5,598$1,005$6,000 What is the project's Free Cash Flow in Year 3? $1,301 $6,367 $6,000 $4,335 $2,601 $4,266 If the WACC is 10%, what is the project's NPV? $5,130$5,130$14,015$2,115$14,015$2,115