The company is evaluating if the replacement of an old computer is economically feasible. You have the following information;

Old computer:

Purchased $2$ years ago for a price of $$120,000$

Depreciation using $5$ year MACRS.

Resale value of $$37,600.$

New computer:

The cost of new computer is $$180,000$ subject to $5$ year MACRS.

The new computer will provide additional cost savings and benefits of $$42,000$ for the next $6$ years $=$ EBITDA.

Company's tax rate is $35\%$ on profit and capital gains. The cost of capital for the company is $10\%.$ Your task is to find the incremental cash flows from replacement decisions and evaluate if replacement is economically feasible based on NPV$.$