Question: I need help with B and C. I would like the formula to use to find amounts of question B. I figured out A. firm

I need help with B and C. I would like the formula to use to find amounts of question B. I figured out A.

I need help with B and C. I would like the formulato use to find amounts of question B. I figured out A.firm is subject to a tax rate of 21%. The revenues andexpenses (excluding depreciation and interest) associated with the new and the oldmachines for the next 5 years are given in the table contains

firm is subject to a tax rate of 21%. The revenues and expenses (excluding depreciation and interest) associated with the new and the old machines for the next 5 years are given in the 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. a. Calculate the initial cash flow associated with replacement of the old machine by the new one. Calculate the initial cash flow below: (Round to the nearest dollar.) b. Determine the periodic cash flows associated with the proposed replacement. (Note: Be sure to consider the depreciation in year 6.) Calculate the cash flows with the old machine below: (Round to the nearest dollar.) \begin{tabular}{cccccc} & & New machine & & Old machine \\ \cline { 3 - 5 } \cline { 5 - 6 } Year & Revenue & Expenses(excludingdepreciationandinterest) & & Eevenue & Expenses(excludingdepreciationandinterest) \\ \hline 1 & $749,600 & $720,300 & & $674,500 & 660,000 \\ 2 & 749,600 & 720,300 & & 676,500 & 660,000 \\ 3 & 749,600 & 720,300 & 680,500 & 660,000 \\ 4 & 749,600 & 720,300 & & 678,500 & 660,000 \end{tabular} Percentage by recovery year* \begin{tabular}{cc} \hline 5 years & 7 years \\ \hline 20% & 14% \\ 32% & 25% \\ 19% & 18% \\ 12% & 12% \\ 12% & 9% \\ 5% & 9% \\ & 9% \\ & 4% \end{tabular} c. Depict on a time line the net cash flows found in parts (a) and (b) associated with the proposed replacement decision

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