The Woodruff Corporation purchased a piece of equipment three years ago for $223,000. It has an asset depreciation range (ADR) midpoint of eight years. The old equipment can be sold for $91,000.

A new piece of equipment can be purchased for $302,500. It also has an ADR of eight years.

Assume the old and new equipment would provide the following operating gains (or losses) over the next six years:

YearNew Equipment Old Equipment

1...............$81,500$26,250

2...............75,00014,000

3...............68,7507,000

4...............61,7506,250

5...............50,2507,500

6...............45,750-9,000

The firm has a 25 percent tax rate and a 9 percent cost of capital.

What is the net cost of the new equipment?Round your solution to two decimal places.

i have first answer which is 218,194 2%

What is the present value of incremental benefits?Round your solution to two decimal places.

What is the NPV of this replacement decision?Round your solution to two decimal place