Please complete in Excel showing the calculations.

Top Corp. is considering replacing its existing equipment that is used to produce tables. This existing equipment was purchase 3 years ago at a base price of $80,000. Installation costs at the time for this old equipment were $6,000. The existing equipment is considered a 5-year class for MACRS. The existing equipment can be sold today for $50,000 and for $0 in 4 years. The new equipment has a purchase price of $180,000 and is also considered a 5-year class for MACRS. Installation costs for the new equipment are $9,000. It is estimated that this equipment can be sold in 5 years (end of project) for $50,000. This new equipment is more efficient than the existing one and thus savings before taxes using the new machine are $15,000 a year. This new equipment will also require additional working capital today of $10,000; this investment will be recovered at the end of the project in year 5. The company's marginal tax rate is 20% and the cost of capital is 10%.

What is the NPV of this replacement project? The following 6 questions reach the value for the answer.

MACRS Fixed Annual Expense Percentages by Recovery Class

For your answer, round to the nearest dollar, do not enter the $ sign, use commas to separate thousands, use a negative sign in front of first number is the cash flow is negative (do not use parenthesis to indicate negative cash flows). For example, if your answer is $3,005.87 then enter 3,006; if your answer is -$1,200.25 then enter -1,200

A) What is the initial outlay (I0) for this project - the project cash flows at time = 0?

B) What is the free cash flow (FCF) for year 1 of this replacement project?

C) What is the free cash flow (FCF) for year 2 of this replacement project?

D) What is the net operating profit plus incremental depreciation for year 5 of this replacement project?

E) What is the free cash flow (FCF) for year 5 of this replacement project?

F) What is the NPV of this replacement project?