The Evetly Equipment Company's llange-fipping machine was purchased 5 years ago for $40,000. It had an expected lie of 10 yeari when a was baghh, and as remaning deptecintion is \$4,000 per year for each year of its remaining He. As ollder flange-lippers are robust and useful machines, thes one can be sold for $20,000 at the sad of its uteful life. fullet dep depreciated. The old machine can be sold today for $50,000. The firm's tax rate is 25%, and the apriroprate cont of capital is 14%5. a. If the new flango-lipper is purchased, whot is the ameunt of the inical cash flow at Year 0 ? (Ohint: you need to calculate the book value ef the old machinn a you can cakalate its after-tax salvage value.) Hoend your answer to the nesest deller. Cash outlow, if ach, ahould be indicated by a mimias angh. b. What ore the incremental net cach flows that will occur at the end of Years t through 57 blenti ble sure to alio indabe the armual degreoaten aar savings ard the alter-tax indicated by a minus sign. CF1CF2CF3CF4CF354455 if Should Everly replace the flange-lipper