Q) Your corporation is considering replacing older equipment.The old machine is fully depreciated and cost$47,124.00seven years ago.The old equipment currently has no market value. The new equipment cost$54,516.00 .The new equipment will be depreciated to zero using straight-line depreciation for the four-year life of the project. At the end of the project the equipment is expected to have a salvage value of$32,908.00 .The new equipment is expected to save the firm$35,365.00annually by increasing efficiency and cost savings.The corporation has tax rate of32.93%and a required return on capital of13.21% .

a) What is the total initial cash outflow? (show as negative number )

b) What are the estimated annual operating cash flows?

c) What is the terminal cash flow?

d) What is the NPV for this project?