The managers of Jones fompany are conaisering replacing an existing piece of equigment, and have collected the following informations - The new niece of equipment will have a cost of 5600,000 , and it will be depreciated on a straight-line basis over a neried of five years. - The old machine is also being depreciated on a straight-line basis. It has a book value of 3200,000 (at year 0 ) and thee more years of depreciation left (\$50,000 per vear). - The new equipment will have a salvage value of $0 at the end of the project's life (vear 5 ). The old machine has a current saivage value (at year 0) of $300,000. - Replacing the old machine wall require an investment in net working capital (NWC) of $50,000 that wai be recovered at the end of the project's life (year 5). - The new machine is more efficient, so the incremental increase in operating income before taxes will increase by a total of $300,000 in each of the next five years (years 1-5). (Hint: This value represents the difference between the revenues and operating costs (inctuding depreciation expense) generated using the new equipment and that earned using the old equipment.) - The project's required rate of return is 8%. - The company's annual tax rate is 30%. Compiete the foliowing table and compute the incremental cash fows associated with the repiacenent of the old equipment with che new equiment. - The company's annual tax rate is 30%. Complete the following table and compute the incremental cash flows associated with the replacement of the old equipment with the new equipment. The net present value (NPV) of this replacement project is