Current Attempt in Progress

Blossom Cleaners is considering replacing one of its tired cleaning machines for a new model that can dry$-$clean clothes in half the time of the old machine. Both the book value and the salvage value of the current machine are $$2,260$; the current machine would be sold if the new machine is purchased. The new machine would cost $$21,000$ and is expected to last $15$ years, at which point it would be sold for its salvage value of $$2,100.$ It would generate additional net operating cash flows of $$4,360$ each year of its useful life.

Blossom Cleaners estimates its tax rate to be $25\%,$ while its required rate of return is $8\%.$

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Outline the appropriate cash flows$-$including the depreciation tax shield, timing, adjustment for taxes, and appropriate PV factor for each component of this equipment$-$replacement scenario. $($Round present value factor answers to $5$ decimal places, eg$.1\mathrm{.}25124.$ Round tax rate and present value to $2$ decimal places, e$.$g$.0\mathrm{.}15$ or $15\mathrm{.}25.$ Enter negative amounts using either a negative sign preceding the number, eg$.45$ or parentheses, eg$.(45).)$

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