ABC Engines, Inc. must develop the relevant cash flows for a replacement capital investment project that will take place at the beginning of 2021. The proposed equipment costs $600,000 and has installation costs of $20,000. This is a 5-year project from 2021 to 2025. The proposed equipment will be depreciated using a five-year recovery schedule. The existing equipment, which originally cost $350,000 when it was purchased at the beginning of 2017 (4 years ago) and will be sold for $200,000, has been depreciated using an MACRS five-year recovery schedule. The new equipment is required to invest $27,000 current assets and $12,000 current liabilities. The firms weighted average cost of capital is 10% The firm has a 40 percent tax rate. The MACRS 5-year recovery schedule is as follows: Year 1: 20% Year 2: 32% Year 3; 19% Year 4: 12% Year 5: 12% Year 6: 5% Please answer the following five questions. You have to show your work to get full credits. a. Compute the cost of the proposed equipment? b.Compute the existing equipment's book value at the beginning of 2021? c. Compute the after-tax cash flow on the sale of the existing equipment at the beginning of 2021? d. Compute the working capital? e. Compute the initial investment of this project?