given in the table

$.($Table $$ contains the applicable MACRS depreciation percentages.$)$ Note: The new machine will have no terminal value at the end of $5$ years.

a$.$ Calculate the initial cash flow associated with replacement of the old machine by the new one.

b$.$ Determine the periodic cash flows associated with the proposed replacement. $($Note: Be sure to consider the depreciation in year $6.)$

c$.$ Depict on a time line the net cash flows found in parts $($a$)$ and $($b$)$ associated with the proposed replacement decision. Data table Data table

$($Click on the icon here in order to copy the contents of the data table below into a spreadsheet.$)$

Rounded Depreciation Percentages by Recovery Year Using MACRS for

First Four Property Classes

$*$These percentages have been rounded to the nearest whole percent to simplify calculations while

retaining realism. To calculate the actual depreciation for tax purposes, be sure to apply the actual

unrounded percentages or directly apply double$-$declining balance $(200\%)$ depreciation using the half$-$year

convention.