Excel Orline Structured Activity: Aeplacement Analysis The Gubert instrument Corporation is considering replacing the wood steamer it currently uses to shape guitar sides. The steamer has 6 years of remaining Me. If kept, the steamer will have depreciation expenses of $650 for 5 years and $325 for the saxth year, Its current book value is $3,575, and it can be sold on an Internet auction site for $4,150 at this time. If the old steamer is not replaced, it can be sold for $800 at the end of its useful life. Gibert is considering purchasing the Side Steamer 3000 , a higher-end steamer, which costs $13,000, and has an estimated useful hife of 6 years with an estamated salvage value of $1,300. This steamer falls into the MMCR5.5-years class, so the applicable depreciation fates are 20.00\%, 32.00%5,19.20%, 11.52\%, 11.52\%, and 5.76%. The new steamer is faster and would allow for an outpot expansion, so sales would rise by $2,000 per year; even so, the new machine's much greater efficiency would reduce operating expenses by $1,500 per year. To support the greater sales, the new machine would require that inventonies increase by $2,900, but accounts payable would simultaneously increase by $700. Gilbert's marginal federal-plus-state tax rate is A0\%, and its WACC is 15% The data has been collected in the Microsoft Eoce Online file below. Open the spreadsheet and perform the required analysis to answer the questions below. Open spreedshect should it replace the old steamer? The old stearner be replaced. What is the NPY of the project? Do not round intermediate calculations. Round your answer to the nearest dollar: 5 Replacement Analysis CDEFGH Ond Eoupmont Depreciation expenso, Yoars 1 to 5 Depreciation experse, Yoar 6 6. Cument bock value 7. Qurtent marknd value 8. Market value, Yoar 6 $650 $325 $3,575 $4,150 $800 9 10 Now Equpmont. 11 Estrmaled useful He (in years) 12 Purchase price 13 Salvage value, Year 6 14 Annual seles increase 15 Annual reduction in operating expenses 16. Incial inctease in inventories 17. Intial increase in accounts poyable. 18. 19 20 MACR2S depreciation rates (5-yoar class) \begin{tabular}{|} \hline Yoar 1 \\ \hline 2000% \\ \hline 4000% \\ \hline 1500% \\ \hline \end{tabular} Step 1: Calcilation of imvestrment at t=0 Formulas Step 1. Culalaton of irvestment at t=0 Formulas Purchase price of new equement Sale of old equipment Tax on sale of old equemmen Change in net opgrating working captal Total imostment outlay Step 2 Calculabon of annual afer tax cash inflows Steg 3 Cakculation of annal deppeciation far smmes 40 41 Now equpmont 42 Old equpenent. 43 Chango in annual depreciation 44 Formulas