Net cash flows Central Laundry and Cleaners is considering replacing an existing piece of machinery with a more sophisticated machine. The old machine was purchased 3 years ago at a cost of $45,800, and this amount was being depreciated under MACRS using a 5 -year recovery period. The machine has 5 years of usable life remaining. The new machine that is being considered costs $75,600 and requires $4,400 in installation costs. The new machine would be depreciated under MACRS using a 5-year recovery period. The firm can currently sell the old machine for $54,100 without incurring any removal or cleanup costs. The 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.) \begin{tabular}{cccccc} & \multicolumn{2}{c}{ New machine } & & \multicolumn{2}{c}{ Old machine } \\ \cline { 3 - 5 } Year & Revenue & Expenses(excludingdepreciationandinterest) & & Eevenue & Expenses(excludingdepreciationandinterest) \\ \hline 1 & $749,700 & $720,500 & & $674,400 & 659,100 \\ 2 & 749,700 & 720,500 & & 676,400 & 659,100 \\ 3 & 749,700 & 720,500 & 680,400 & 659,100 \\ 4 & 749,700 & 720,500 & 678,400 & 659,100 \\ 5 & 749,700 & 720,500 & 674,400 & 659,100 \end{tabular} 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