Put this below "CAR format Excel spreadsheet Falconville Pump Company Replacement Decisions cash flow estimation worksheet" 1. The equipment has a delivered cost of $115,000. An additional $3,000 is required to install and test the new system. 2. The new pumping system is classified by the IRS as 7-year property with the same 7-year estimated service life. For assets classified by the IRS as 7-year property, the Modified Accelerated Cost Recovery System (MACRS) permits the company to depreciate the asset over 8 years at the following rates: Year 1 = 14%; Year 2 = 25%; Year 3 = 17%; Year 4 = 13%; Year 5 = 9%; Year 6 = 9%; Year 7 = 9%; Year 8 = 4%. At the end of its 5 estimated service life of 7 years, the salvage value is expected to be $8,000, with removal costs of $1,200. 3. The existing pumping system was purchased at $48,000 five years ago and has been depreciated on a straight-line basis over its economic life of 6 years. If the existing system is removed from the well and crated for pickup, it can be sold for $4,200 before tax. It will cost $1,000 to remove the system and crate it. 4. At the time of replacement (t=0), the firm will need to increase its net working capital requirements by $6,500 to support inventories