The Golden corporation is considering replacing one of its larger control devices. A new unit sells for $$29,000($delivered$).$ An additional $$3,000$ will be needed to install the device. The new device has an estimated $20-$year service life. The estimated salvage value at the end of $20$ years will be $$2,000.$ The new control device will be depreciated over $20$ years on a straight$-$line basis to $$0.$ The existing control device $($original cost $=$ $$15,000)$ has been in use for $12$ years $,$ and it has been fully depreciated $($that is$,$ its book value equals zero$).$ Its scrap value is estimated to be $$1,000.$ The existing device could be used indefinitely, assuming the firm is willing to pay for its very high maintenance costs. The firm$$s marginal tax rate is $22$ percent. The new control device requires lower maintenance costs and frees up personnel who normally would have to monitor the system. Estimated annual cash savings from the new device will be $$9,000.$ The firm$$s cost of capital is $12$ percent.

a$.$ What is the initial investment associated with this project? $(8$ points$).$

b$.$ What are the annual after$-$tax cash flows associated with this project $(24$ points$).$

c$.$ Should the firm replace the old control device? $(18$ points$).$