Dot.com is considering replacing its existing machine. You are given the following facts: - The firm has spent $5,000 studying the compatibility of the new machines and the experts have reached the conclusion that the machine is indeed compatible with the rest of the production line. - The new machine costs $300,000 and would replace the existing machine. The new machine would be depreciated in straight line at the rate of $20,000 per year and would be sold for $70,000 after 10 years. - The new machine would increase before-tax annual sales by $100,000. The new machine would also increase before-tax annual operating costs by $30,000. These changes in sales and costs would occur at year-end during the 10 years that the new machine would be operating. - The new requires $15,000 in working capital while the old machine only requires $14,000 in working capital. - The old machine was acquired 5 years ago for $90,000 and it has a current market value of $40,000. The old machine could last for another 10 years, and after 10 years would be worth $10,000. - The current book value of the old machine is $50,000 and it would be depreciated in straight line at the rate of $3,000 per year. - Dot.com's marginal tax rate is 40%. I. Calculate the incremental FCF in year 0 of buying the new machine II. Calculate the incremental FCF in year 5 of buying the new machine III. Calculate the incremental FCF in year 10 of buying the new machine