Please kindly answer the following questions by using Microsoft Excel and showing the embedded formulas in each cell.

I have attached the answers from the book Appendix. Thank you

The Everly Equipment Company's flange-lipping machine was purchased 5 years ago for $55,000. It had an expected life of 10 years when it was bought, and its remaining depreciation is \$5,500 per year for each year of its remaining life. As older flange-lippers are robust and useful machines, this one can be sold for $20,000 at the end of its useful life. A new high-efficiency, digital-controlled flange-lipper can be purchased for $120,000, including installation costs. During its 5-year life, it will reduce cash operating expenses by $30,000 per year, although it will not affect sales. At the end of its useful life, the high-efficiency 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 $35,000. The firm's tax rate is 25%, and the appropriate cost of capital is 16%. a. If the new flange-lipper is purchased, what is the amount of the initial cash flow at Year 0 ? b. What are the incremental cash flows that will occur at the end of Years 1 through 5 ? c. What is the NPV of this project? Should Everly replace the flange-lipper? 1113 a. $86,875. b. $31,124;$34,460;$25,568;$23,348;$6,125. c. $2,243