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

Old computer:

$1.$ Purchased $2$ years ago for a price of $$120,000$

$2.$ Depreciation using $5-$year MACRS.

$3.$ Resale value of $$37,600.$

New computer:

$1.$ The cost of new computer is $$180,000$ subject to $5-$year MACRS.

$2.$ 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$.$ Please present the solution in detials and the computation in EXCEL.