Question: Swifty Corp. is planning to replace an old asset with new equipment that will operate more efficiently. The following amounts may be relevant to this

Swifty Corp. is planning to replace an old asset with new equipment that will operate more efficiently. The following amounts may be relevant to this analysis.Cost of old asset$10,900Book value of old asset$2,100Selling price of old asset$2,100Purchase price of new replacement asset$18.900Estimated salvage value of new asset$1,800Estimated useful life of new asset5 yearsEstimated annual net operating cash inflows$2,800/year for 5 yearsDiscount rate12%Tax rate20%Determine which amounts listed are relevant cash flows for Swifty Corp. as it considers this asset sale and replacement.

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