I have calculated the ending book values for both machines and I am stuck on how to proceed from there. Any assistance in solving this problem would be greatly appreciated.

Please read the information below. Capital Budgeting Problem Canal Company Canal Company is contemplating the purchase of a new leather sewing machine to replace the existing machine. The existing machine was purchased four years ago at an installed cost of $115,000; it was being depreciated under MACRS using a 5-year recovery period. The existing machine is expected to have a useful life of 5 more years. The new machine costs $203,000 and requires $8,000 in installation costs; it has a five-year useable life and would be depreciated under MACRS using 5-year recovery period. Canal can currently sell the existing machine for $52,000 without incurring any removal or cleanup costs. To support the increased business resulting from purchase of the new machine, accounts receivable would increase by $63,000, inventories by $12,000, and accounts payable by $72,000. At the end of 5 years, the existing machine is expected to have a market value of zero; the new machine would be sold to net $66,000 after removal and cleanup costs and before taxes. The firm is subject to a 33% tax rate and a WACC of 13.36%. The estimated earnings before depreciation, interest, and taxes over the 5 yea rs for both the new and the existing grinder are shown in the table on the next page. Earnings before interest, taxes, depreciation and amortization Year New Machine Existing Machine 1 $75,000 $35,000 2 75,000 33,000 3 75,000 30,000 4 75,000 27,000 5 75,000 24,000 Should Canal Company invest in the new machine? Solve the problem in Excel, showing your work and making sure you answer the above