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Your corporation is considering replacing older equipment. The old machine is fully depreciated and cost $60,781.00 seven years ago. The old equipment currently has no

Your corporation is considering replacing older equipment. The old machine is fully depreciated and cost $60,781.00 seven years ago. The old equipment currently has no market value. The new equipment cost $79,228.00 . The new equipment will be depreciated to zero using straight-line depreciation for the four-year life of the project. At the end of the project the equipment is expected to have a salvage value of $35,474.00 . The new equipment is expected to save the firm $28,653.00 annually by increasing efficiency and cost savings. The corporation has tax rate of 31.28% and a required return on capital of 11.61%. Please enter your answers with two decimal places, as these are dollar amounts. What is the total initial cash outflow? (Show as a negative number): $ What are the estimated annual operating cash flows? $ What is the terminal cash flow? $ What is the NPV for this project? $

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