The Gilbert instrument company is considering replacing the wood it currently uses to shape guitar sides. The steamer has $6$ years of remaining life. If kept, the steamer will have de precierit expens $550$ or he next $5$ years $($year $1$ through year $5)$ and $$500$ for the sixth year. Its current book value is $$4,250,$ and it can be sold on an Internet auction site for $$2,000$ at this time $($at t$=0).$ If the old steamer is not replaced, it can be sold for $$300$ at the end of $6$w year.Gilbert is considering purchasing the Side Steamer $3000,$ a higher$-$end steamer, which costs $$15,000$ and has an estimated$)$ useful life of $6$ years. At the end of sixth year, it can be sold at $$1,500.$ This steamer falls into the MARCRS $5-$year class, so the applicable depreciation rates are $20\mathrm{.}00\%,32\mathrm{.}00\%,19\mathrm{.}20\%,11\mathrm{.}52\%,11\mathrm{.}52\%,5\mathrm{.}76\%$ for year through year $6$ respectively. The new steamer is faster and allows for an output expansion, so sales would rise by $52,500$ per year, the new machine's much greater efficiency would reduce the before$-$tax operating expense by $$1,000$ per year. To support greater sales, the new machine would require inventories to increase by $$3,200,$ but accounts payable would simultaneously increase by $$800.$ Gilbert's marginal federal$-$plus$-$state tax rate is $30\%,$ and its WACC is $12\%.$Use the above information to answer questions $24-26\mathrm{.}24.$ What is the initial incremental $($net$)$ cash flow at time $=0($ACFo$)$ if the new machine is purchasedand the old one is replaced?a$.-$$$15,000$b$.-$$$17,400$C$.-$$$14,725$d$.-$$$15,255$e$.-$$$16,55025.$What is the incremental $($net$)$ cash flow at time $=3($ACFs$)$ if the new machine is purchased and the old one is replaced?a$.$ $$3089\mathrm{.}0$b$.$ $$2743\mathrm{.}4$C$.$$$3125\mathrm{.}0$d$.$$$3665\mathrm{.}0$e$.$$$2559\mathrm{.}226.$What is the incremental $($net$)$ cash flow at time $=6($ACF$6)$ if the new machine is purchased and the old one is replaced?. $$3125\mathrm{.}0$b$.$ $$3665\mathrm{.}0$c$.$ $$2743\mathrm{.}4$d$.$ $$3240\mathrm{.}0$e$.$ $$5799\mathrm{.}2$Should Gilbert replace the old wood steamer with the new one? a$.$Yes b$.$ No