Please help me figure out what goes in the boxes in part B (Part A is done and is correct). Can you also show your work pretty please? Contrary to what most people do on here, I actually want to understand how to do it instead of just getting the answers.

% P11-16 (similar to) Question Help Relevant cash flows-No terminal value 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 $51,500, 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 $75,000 and requires $3,800 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 $55,200 without incurring any removal or cleanup costs. The firm is subject to a tax rate of 40%. 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 (Table contains the applicable MACRS depreciation percentages.) Note: The new machine will have no terminal value at the end of 5 years. i Data Table - X a. Calculate the initial investment associated with replacement of the old machine by the new one. b. Determine the incremental operating cash inflows associated with the proposed replacement. (Note: Be sure to consider the depreciation in year 6.) c. Depict on a time line the relevant cash flows found in parts (a) and (b) associated with the proposed replacement decision. a. Calculate the initial investment associated with replacement of the old machine by the new one. (Click on the icon located on the top-right corner of the data table below in order to copy its contents into a spreadsheet.) Calculate the initial investment below: (Round to the nearest dollar) Rounded Depreciation Percentages by Recovery Year Using MACRS for Cost of new asset $ 75,000 First Four Property Classes Percentage by recovery year* Installation costs 3.800 Recovery year 3 years 5 years 7 years 10 years Total cost of new asset $ 78,800 33% 20% 10% 45% Proceeds from sale of old asset $ (55,200) 32% 25% 18% 15% 19% 18% 14% Tax on sale of old asset 16,106 Total proceeds, sale of old asset $ (39,094) Initial investment 39,706 y year 14% COUWN+ b. Determine the incremental operating cash inflows 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.) 11 Year * Data Table 6% 6% 4% Totals 100% 100% 100% 100% *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. Profit before depreciation and taxes Depreciation Net profit before taxes (Click on the icon located on the top-right corner of the data table below in order to copy its contents into a spreadsheet.) Taxes Print Done Net profit after taxes Year Operating cash inflows Revenue $750,700 750,700 750,700 750,700 750,700 New machine Expenses (excluding depreciation and interest) $720,600 720.600 720,600 720,600 720,600 Revenue $673,900 675,900 679,900 677,900 673,900 Old machine Expenses (excluding depreciation and interest) $659,400 659,400 659,400 659,400 659,400 Enter any number in the edit fields and then click Check Answer. Print Done 12 remaining 12 parts Check