Extra Credit $-$ Replacement Project

Extra Credit $-$ Modify the above expansion project into a replacement project analysis, incorporating the following:

$\backslash$table$[[,,,$Year $0,$Year $1,$Year $2,$Year $3,$Year $4],[$selling old equipment today,$$200,000,$Operating Income before Taxes,,,,,$],[$gain on sale,$$120,000,,,,,],[$increase to operating income before,Taxes,,,,,$],[$taxes $($years $1-4)*,25\mathrm{.}0\%,$Operating Income after Taxes,,,,,$],[$depreciat$\text{'}$n annual increase,$$110,000,$Supplemental operating cash flow,,,,,$],[,,$Project's NPV calculation:,,,,,$]]$

the new machine increases operating income before taxes by $25\%$ Total NPV:

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