Question Completion Status QUESTION 1 Chartwells Dining Services is considering an upgrade to their commercial cooking and refrigeration of the current equipment or any tax savings or losses that will occur as a result of that sale The current equipment was purchased 2 years ago at a cost of $317,800 and is being depreciated using an accelerated depreciation melthod. The book valun of the current equipment s the cost, less the accumulated depreciation from the last 2 years. f new equomentis purchased, t will be depreciated using the same accelesrated deprecation method (table equpment. The new epupment weould cost $600,00, before consdering the sae below). In addition, purchasing the new equipment will allow Chartwells to sell the current equipment for $12,700, the current market value Finally, new equipment will result in annual cost savings for the next 5 years in varying amounts (listed below) Cartwels has a tax rate of 33% and requires a return on investment of 8% for all capital expenditures Incremental Cash Flow (Cash Savings) Depreciation Year 1 :21% Year 2-332 Year 3 = 202% Year 4 : 125% Year 5 13 1% What is the net present value of replacing this asset? $41,000 $41,000 $20,000 $18,000 QUESTION 2 Based on your other question - type your answer to the following questions 1) What is the difference in depreciation for each year? (15 Points) 2) What is the tax savings as a result of the difference in depreciation for each year7 (15 Points) 3) What is the Net Cash Flow benefit from the incremental cash flows for each year (S Points) 4) What is the Present Value of the total savings for each year? (15 Points) 5) What is the initial Investment? (20 Points 6) What is the tax savings/loss that will be realized from the sale of the current equipmentz (10 Points) Click Sans und Submit toause and 1mir. Click Saue An Auvers to one an anneers