The Gilbert Instrument Corporation is considering replacing the wood steamer it currently uses to shape guitar sides. The steamer has 6 years of remaining life. If kept, the steamer will have depreciation expenses of $550 for 5 years and $300 for the sixth year. Its current book value is $3,050, and it can be sold on an Internet auction site for $3,700 at this time. If the old steamer is not replaced, it can be sold for $800 at the end of its useful life. Gibert is considering purchasing the Side Steamer 3000, a higher-and steamer, which costs $12,600, and has an estimated useful life of 6 years with an estimated salvage value of $1,400. This steamer falls into the MACRS 5-years cless, so the applicable depreciation rates are 20.00%, 32.00%, 19.20%, 11.52%, 11.52%, and 5.76%. The new steamer is faster and allows for an output expansion, so sales would rise by $2,000 per year, the new machine's much greater efficiency would reduce operating expenses by $1,800 per year. To support the greater sales, the new machine would require that inventories increase by $2,900, but accounts payable would simultaneously increase by $700. Gilbert's marginal federal-plus-state tax rate is 40%, and the project cost of capital is 11%. What is the NPV of the project? Do not round intermediate calculations. Round your answer to the nearest dollar. $ Should it replace the old steamer? The old steamer -Select- be replaced. Allen Air Lines must liquidate some equipment that is being replaced. The equipment originally cost $18 million, of which 80% has been depreciated. The used equipment can be sold today for $6 million, and its tax rate is 30%. What is the equipment's after tax net salvage value? Enter your answer in dollars. For example, an answer of $1.2 milion should be entered as 1,200,000. Round your answer to the nearest dollar The financial staff of Cairn Communications has identified the following information for the first year of the roll-out of its new proposed service: Projected sales $24 million Operating costs (not including depreciation) $12 million Depreciation $5 million Interest expense $3 million The company faces a 30% tax rate. What is the project's operating cash flow for the first year (t = 1)? Enter your answer in dollars. For example, an answer of $1.2 million should be entered as $1,200,000. Round your answer to the nearest dollar