NEED THE WORK IN EXCEL ALONG WITH THE FORMULAS VIEW

4. NPV of machine replacement Mighty may replace an old machine with a new, more efficient model. The old machine was purchased 5 years ago for $120,000. It is being depreciated over 8 years to zero book value using the straight-line method. Its current book value is $45,000. Its current market value is $36,000. The new machine costs $180,000. It will be depreciated over 6 years to zero book value using the straight-line method. After its useful life of 10 years it is expected to have a scrap value of $40,000 The new machine will increase Earnings before Depreciation and Taxes by $30,000 per year for 10 years. The company's tax rate is 30% and the appropriate discount rate for this project is 10%. a) List all 11 after-tax cash flows for this project (Year O is the initial investment) b) Compute the NPV. c) Compute the IRR and payback d) Comment on whether the old machine should be replace and explain why or why not