Answer all questions. I will give thumbs up for sure. Urgent.

Given: Old asset installed cost =$59500, New Asset installation cost = $14300

Q-5: Lombard Company is contemplating the purchase of a new high-speed widget grinder to replace the existing grinder. The existing grinder was purchased 2 years ago at an installed cost of (See Appendix); it was being depreciated under straight line method (SLM). The existing grinder is expected to have a usable life of 5 more years. The new grinder costs $115,000 and requires (See Appendix) in installation costs; it has a 5-year usable life and would be depreciated under (SLM) using a 5-year recovery period. Before installing new grinder, Lombard company paid $13,000 to a consultancy firm to analyze the need for new grinder. Lombard can currently sell the existing grinder for $70,000 without incurring any removal or cleanup costs. To support the increased business resulting from purchase of the new grinder, accounts receivable would increase by $40,000, inventories by $30,000, and accounts payable by $58,000. At the end of 5 years, the existing grinder would have a market value of zero; the new grinder would be sold to net $29,000 after removal and cleanup costs and before taxes. The firm is subject to a 40% tax rate. The estimated earnings before depreciation, interest, and taxes over the 5 years for both the new and the existing grinder are shown in the following table. 8 Year 1 2 3 4 5 Earnings before Depreciation, Interest, and Taxes New grinder Existing grinder 49000 30000 49000 28000 49000 26000 49000 24000 49000 22000 a. Calculate the initial investment associated with the replacement of the existing grinder by the new one. b. Determine the incremental operating cash flows associated with the proposed grinder replacement. c. Determine the terminal cash flow expected at the end of year 5 from the proposed grinder replacement. d. Depict on a time line the relevant cash flows associated with the proposed grinder replacement decision