The new high-speed copier can be purchased for $23,000 (including freight and installation). Over its 5-year life, it will reduce labor and raw materials usage sufficiently to cut annual operating costs from $18,000 to $9,000. This reduction in costs will cause before-tax profits to rise by an equal amount. It is estimated that the new copier can be sold for $2,400 at the end of five years; this is its estimated salvage value. The old printer's current market value is $4,576. If the new copier is acquired, the old printer will be sold to another company. The company's marginal federal-plus-state tax rate is 40.00%, and the replacement copier is of slightly below-average risk. Net working capital requirements will also increase by $4,200 at the time of replacement. By an IRS ruling, the new copier falls into the 3-year MACRS class. The project's cost of capital is set at 11.50%. Under MACRS, the pre-tax depreciation for the copier is: Year 1 = $5,280; Year 2 = $7,200; Year 3 = $2,400; Year 4 = $1,120; Year 5 =0. Compute the initial investment outlay, operating cash flow over the project's life, and the terminal-year cash flows for Mayco's replacement project. Then determine whether the project should be accepted using NPV and IRR analysis.

Current Printer Depreciation: ?

Current Printer Book Value: ?

Initial Outlay: ?

Cash Flow 1: ?

Cash Flow 2: ?

Cash flow 3: ?

Cash Flow 4: ?

Cash Flow 5: ?

TNOCF: ?

NPV: ?

IRR (in xx.yy% not in decimal form): ?