Problem $9-23$ Depreciation and Project Value $($LO$3)$

Bottoms Up Dlaper Service Is considering the purchase of a new Industrial washer. It can purchase the washer for $$3,900$ and sell its old washer for $$1,200.$ The new washer will last for $6$ years and save $$1,100$ a year In expenses. The opportunity cost of capital Is $19\%,$ and the firm's tax rate is $21\%.$

a$.$ If the firm uses straight$-$line depreclation over a $6-$year life, what are the cash flows of the project in years $0$ to $6?$ The new washer will have zero salvage value after $6$ years, and the old washer Is fully depreciated.

Note: Negatlve amounts should be Indicated by a minus sign.

b$.$ What Is project NPV$?$

Note: Do not round Intermedlate calculatlons. Round your answer to $2$ decimal places.

c$.$ What is NPV If the firm Investment is entitled to Immediate $100\%$ bonus depreclation?

Note: Do not round Intermedlate calculatlons. Round your answer to $2$ decimal places.

$\backslash$table$[[$a$.$ Annual operating cash flow in year $0],[$a$.$ Annual operating cash flow in years $1$ to $6]]$

b$.$ NPV

c$.$ NPV