Your corporation is considering replacing older equipment. The old machine is fully depreciated and cost $59,398.00 seven years ago. The old equipment currently has no market value. The new equipment cost $81,221.00 . 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 $33,701.00 . The new equipment is expected to save the firm $37,437.00 annually by increasing efficiency and cost savings. The corporation has tax rate of 26.86% and a required return on capital of 12.78% .

a) What is the total initial cash outflow? (show as negative number )

b) What are the estimated annual operating cash flows?

c) What is the terminal cash flow?

d) What is the NPV for this project?