1: Gen-X Industries is developing the incremental cash flows associated with the proposed replacement of an existing machine tool with a new, technologically advanced one. Given the following costs related to the proposed project, explain how each would be treated in the NPV analysis of the project. (a) The new machine tool will be operated by robots that are currently used to operate the old tool. The robots originally cost $200,000 and now have a book value of $40,000 (b) Gen-X would be able to use its existing computer system to develop programs for operating the new machine tool. The old machine tool did not require these programs. Although the firm's computer has excess capacity available, the capacity could be leased to another firm for an annual fee of $17,000. (c) Gen-X would have to obtain additional floor space to accommodate the larger new machine tool. The space that would be used is currently being leased to another company for $10,000 per year. (d) Gen-X would use a small storage facility to store the increased output of the new machine tool. The storage facility was built by Gen-X three years earlier at a cost of $120,000. Because of its unique configuration and location, it is currently of no use to either Gen-X or any other firm. (e) Gen-X would retain an existing overhead crane, which it had planned to sell for its $180,000 market value. Although the crane was not needed with