The Gilbert Instrument Corporation is considering replacing the wood steamer it currently uses to $($year $1$ through year $5)$ and $$500$ life. If kept, the steamer will have depreciation expense of $$750$ for the next $5$ years useful life of $6$ years. At the steamer $3000,$ a higher$-$end steamer, which costs $$15,000$ and has an estimated so the applicable depreciatio end of sixth year, it can be sold at $$1,500.$ This steamer falls into the MARCRS $5-$year class, respectively. The new steamer is are $20\mathrm{.}00\%,32\mathrm{.}00\%,19\mathrm{.}20\%,11\mathrm{.}52\%,11\mathrm{.}52\%,5\mathrm{.}76\%$ for year $1$ through year $6$ new machine's much greater is faster and allows for an output expansion, so sales would rise by $$2,500$ per year; the greater sales, the new machinficiency would reduce the before$-$tax operating expense by $$1,000$ per year. To support simultaneously increase by $$8$ w would require inventories to increase by $$3,200,$ but accounts payable would

Use the above information to answer questions $24-26.$

$24.$ What is the initial incremental $($net$)$ cash flow at time $=0(\frac{?}{{?}_{\frac{?}{?}}C{F}_0})$ if the new machine is purchased and the old one is replaced?

a$.-$$$15,000$

b$.-$$$17,400$

c$.-$$$14,725$

d$.-$$$15,255$

e$.-$$$16,550$

$25.$ What is the incremental $($net$)$ cash flow at time $=3(C{F}_3)$ 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{.}2$

$26.$ What is the incremental $($net$)$ cash flow at time $=6(C{F}_6)$ if the new machine is purchased and the old one is replaced?

a$.$ $$3125\mathrm{.}0$

b$.$ $$3665\mathrm{.}0$

c$.$ $$2743\mathrm{.}4$

d$.$ $$3240\mathrm{.}0$

e$.$ $$5799\mathrm{.}2$

$27.$ Should Gilbert replace the old wood steamer with the new one?

a$.$ Yes

b$.$ No