The Darlington Equipment Company purchased a machine $5$ years ago, prior to the TCJA, at a cost of $$95,000.$ The machine had an

expected life of $10$ years at the time of purchase, and it is being depreciated by the straight$-$line method by $$9,500$ per year. If the

machine is not replaced, it can be sold for $$10,000$ at the end of its useful life.

A new machine can be purchased for $$180,000,$ including installation costs. During its $5-$year life, it will reduce cash operating

expenses by $$45,000$ per year. Sales are not expected to change. At the end of its useful life, the machine is estimated to be

worthless. The new machine is eligible for $100\%$ bonus depreciation at the time of purchase.

The old machine can be sold today for $$50,000.$ The firm's tax rate is $25\%.$ The appropriate WACC is $9\%.$

a$.$ If the new machine is purchased, what is the amount of the initial cash flow at Year $0$ after bonus depreciation is considered? Cash

outflow should be indicated by a minus sign. Round your answer to the nearest dollar.

$

b$.$ What are the incremental cash flows that will occur at the end of Years $1$ through $5?$ Round your answers to the nearest dollar.

Year $1$

$

$

Year $2$

Year $4$

$

Year $5$

$

c$.$ What is the NPV of this project? Do not round intermediate calculations. Round your answer to the nearest cent.

$

Should Darlington replace the old machine?