Hercules Exerclse Equipment Co. purchased a computerized measuring device two years ago for $62,000. The equlpment falls into the five-year category for MACRS depreclation and can currently be sold for $26,800. A new plece of equlpment will cost $152,000. It also falls into the five-year category for MACRS depreclation. Assume the new equlpment would provide the following stream of added cost savings for the next slx years. Use Table 12-12. Use Appendlx B for an approximate answer but calculate your final answer using the formula and financlal calculator methods. The firm's tax rate is 25 percent and the cost of capital is 14 percent. d. What is the cash Inflow from the sale of the old equipment? (Do not round intermediate calculations and round your answer to the nearest whole dollar.) e. What is the net cost of the new equipment? (Include the Inflow from the sale of the old equipment.) (Do not round intermediate calculations and round your answer to the nearest whole dollar.) f. Determine the depreclation schedule for the new equipment. (Round the depreclation base and annual depreclation answers to the nearest whole dollar. Round the percentage depreclation factors to 3 decimal places.) g. Determine the depreclation schedule for the remaining years of the old equipment. (Round the depreclation base and annual depreciation answers to the nearest whole dollar. Round the percentage depreclation factors to 3 decimal places.) h. Determine the incremental depreclation between the old and new equipment and the related tax shield benefits. (Enter the tax rate as a decimal rounded to 2 decimal places. Round all other answers to the nearest whole dollar.) 1. Compute the aftertax benefits of the cost savings. (Enter the aftertax factor as a decimal rounded to 2 decimal places. Round all other answers to the nearest whole dollar.) J-1. Add the depreclation tax shield benefits and the aftertax cost savings to determine the total annual benefits. (Do not round Intermediate calculations and round your answers to the nearest whole dollar.) J-2 Compute the present value of the total annual benefits. (Do not round intermedlate calculations and round your answer to the nearest whole dollar.) k-1. Compare the present value of the incremental benefits ( ) to the net cost of the new equipment (e). (Do not round intermediate calculations. Negative amount should be indicated by a minus sign. Round your answer to the nearest whole dollar.) k-2. Should the replacement be undertaken? Yes No