The Select Comfort Company purchased a mattress$-$stuffing machine $5$ years ago for $$70,000.$ When purchased it had an estimated salvage value of $$5,000$ at the end

of seven years. Last year, the mattress machine was overhauled at a cost of $$3,000.$ The old machine can be sold today for $$20,000.$ A new machine can be purchased

for $$69,300.$ It has a $2-$year life and is expected to reduce operating expenses by $$50,000$ per year. After $2$ years, the new machine can be sold for $$20,000.$ The

company's cost of capital is $9\%$ and the tax rate is $35\%.$ Assume that depreciation is not tax deductible. Answer the following questions.

What are the initial cash flows? $($Answer in dollars and round to the nearest dollar.$)$

$

What are the operating cash flows at the end of the first year? $($Answer in dollars and round to the nearest dollar.$)$

What are the terminal year cash flows? $($Answer in dollars and round to the nearest dollar.$)$

What is the npv of the replacement cash flows? $($Answer in dollars and round to the nearest dollar.$)$The Select Comfort Company purchased a mattress$-$stuffing machine $5$ years ago for $$70,000.$ When purchased it had an estimated salvage value of $$5,000$ at the end of seven years. Last year, the mattress machine was overhauled at a cost of $$3,000.$ The old machine can be sold today for $$20,000.$ A new machine can be purchased for $$69,300.$ It has a $2-$year life and is expected to reduce operating expenses by $$50,000$ per year. After $2$ years, the new machine can be sold for $$20,000.$ The company$$s cost of capital is $9\%$ and the tax rate is $35\%.$ Assume that depreciation is not tax deductible. Answer the following questions.