You as the manager of Vertex Company have been asked by your president to replace a machine for 7 your production department. The company purchases a machine two years ago at a cost of Tk 1,40,000. At that time the machine's expected life was six years and its salvage value at the end of its life was estimated to be Tk. 20,000 . Its being depreciated using the straight line method so that its book value at the end of six years is Tk.20,000. After four years, however, the old machine will have a market value of Tk. 0 . A new machine can be purchased for Tk. 4,50,0000 with the estimated life of four years and it would cost another Tk. 20.000 to set up the machine. It is expected that the machine would be sold after four years for Tk. 30,000 . The machine will fall into the MACRS three year class which is: Y120%,Y2 45%,Y310%, and Y425%. Use of this machine would require an increase in net working capital of Tk 12,000. The machine would have no effect on revenues, but it is expected to save the firm Tk 95,000 per year in before tax operating costs. The old machine can be sold today for Tk. 20,000. The firm marginal tax rate is 40%. i) If the new machine is purchased, what is the amount of the initial investment outlay at year Y0 ? ii) What incremental operating cash flows will occur at the end of year 1 through 4 as a result of replacing the old machine? iii) What is the terminal cash flow at the end of year 4 if the new machine is purchased