Relevant cash flows long dashNo terminal value???

Central Laundry and Cleaners is considering replacing an existing piece of machinery with a more sophisticated machine. The old machine was purchased 3 years ago at a cost of

$ 52,500 and this amount was being depreciated under MACRS using a? 5-year recovery period. The machine has 5 years of

usable life remaining. The new machine that is being considered costs $75,500

and requires $ 4 comma 100$4,100

in installation costs. The new machine would be depreciated under MACRS using a? 5-year recovery period. The firm can currently sell the old machine for $55,800

without incurring any removal or cleanup costs. The firm is subject to a tax rate of 40 %40%.

The revenues and expenses? (excluding depreciation and? interest)

associated with the new and the old machines for the next 5 years are

A. Calculate the

initial investment

associated with replacement of the old machine by the new one.

b.

Determine the incremental operating cash inflows

associated with the proposed replacement.? (Note: Be sure to consider the depreciation in year? 6.)

c.

Depict on a timeline the relevant cash flows found in parts (a

) and

(b

) associated with the proposed replacement decision.

urse html?courseld a 1445 3873&OpenVellumHMAC. 3Bad8771 b3eb57687a24f2245fe88cb# 10001 ions -Blackb Course Home C Home | Chegg.com Q Your Sets/ QuizletBarstool Sports HBO GO. It's HBO Finance 231-01: Corporation Finance Corporation Finance rk: Homework 9 2 of 8 (2 complete) HW Score: 14 Data Table New machine Old machine Year Revenue $749,000 749,000 749,000 749,000 749,000 Expenses (excluding depreciation and interest) $719,300 719,300 719,300 719,300 719,300 Revenue $673,700 675,700 679,700 677.700 673,700 Expenses (excluding depreciation and interest) $661,000 661,000 661,000 661,000 661,000 Print Done DOLL F5 F7 F8 F9 F10 F11 F12 Prtsc 5 6 7 8 9