please solve this question using excel

Required:

a. Calculate the initial investment associated with the replacement of the existing grinder by the new one.

b. Determine the incremental operating cash flows associated with the proposed grinder replacement.

c. Determine the terminal cash flow expected at the end of year 5 from the proposed grinder replacement.

d. Depict on a timeline the relevant cash flows associated with the proposed grinder replacement decision.

e. What would you suggest on this replacement project if the company require 20% cost of capital?

Lombard Company is contemplating the purchase of a new high-speed widget grinder to replace the existing grinder. The existing grinder was purchased 2 years ago at an installed cost of $60,000; it was being depreciated under MACRS using 5-year recovery period. The existing grinder is expected to have a useable life for 5 more years. The new grinder costs $105,000 and requires $5,000 in installation costs; it has a 5-year useable life and would be depreciated under MACRS using a 5-year recovery period. Lombard can currently sell the existing grinder for $70,000 without incurring any removal or cleanup costs. To support the increased business resulting from purchase of the new grinder, account receivable would increase by $40,000, inventories by $30,000, and account payable by $58,000. At the end of 5 years, the existing grinder would have a market value of zero, the new grinder would be sold to net $29,000 after removal and clean-up costs and before taxes. The firm is subject to a 40% tax rate. The estimated earnings before depreciation, interest, and taxes over the 5 years for both the new and the existing grinder are shown in the following table