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Problem 11-13 Replacement Analysis The Everly Equipment Company's ange-lipping machine was purchased 5 years ago for $80,000. It had an expected life of 10 years when it was bought and its remaining depreciation is $8,000 per year for each year of its remaining life. As older flange-Iippers are robust and useful machines, this one can be sold for $20,000 at the end of its ..__:..i m- astions Navigation Menu A new high-efciency digitalcontrolled flange-lipper can be purchased for $160,000, including installation costs. During its 5-year life, it will reduce cash operating expenses by $45,000 per year, although it will not affect sales. At the end of its useful life, the high-efciency machine is estimated to be worthless. MACRS depreciation will be used, and the machine will be depreciated over its 3-year class life rather than its 5-year economic life, so the applicable depreciation rates are 33.33%, 44.45%, 14.81%, and 7.41%. The old machine can be sold today for $50,000. The rm's tax rate is 35%, and the appropriate cost of capital is 15%. a. If the new ange-Iipper is purchased, what is the amount of the initial cash ow at Year 0? Round your answer to the nearest whole dollar. $ i b. What are the incremental net cash ows that will occur at the end of Years 1 through 5? Do not round intermediate calculations. Round your answers to the nearest whole dollar. CF1 $i CF2 $i CF3 $i CF4 $i CF5 $i c. What is the NPV of this project? Do not round intermediate calculations. Round your answer to the nearest whole dollar. $ i Should Everly replace the ange-lipper