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Replcement Project: KFUPM is planning to replace it heavy duty printing machine with a newer model that is faster and better quality. The existing machine has a life of 5 years and 2 years of them has passed. Now KFUPM is evaluating replacing this machine with the newer model which has a life of 3 years. KFUPM hired you to analyze the proposed replacement and you collected the below information. New Machine: Life of machine: 3 years The cost of the new machine is SAR 1,187 The machine will increase the gross profil every year by SAR 359 The market value of the machine when sold at the end of its life is SAR 199 If replaced, then the networking capital (NOWC) will increase every year by SAR 21 KFUPM will recover all investments in working capital at the end of the new machine's life (after 3 years). Old Machine: Life of machine is 5 years. 2 years has past. Effective remaining life of the machine is 3 years Orginal cost of the existing machine is SAR 803 Notes: 1. Use 2 Decimals 2. It is advisable to solve the question using Excel or on paper, and then put your relevant answers here: Depreciable base SAR is A1. New Machine: Year0 Yeart Year3 NOPAT + DPD. Year2 O Yeart 0 0 Year2 0 Year 3 A2. Cash Flows from Working Captial (WC) Year (-) change in NOWC *make sure to put the correct sign A3. Cash Flows from the Initial Outlay (10): Yearo (-) 10 *make sure to put the correct sign X x * X Year3 A4. Cash Flows from Terminal Cash Flows (TCF): x TCF *make sure to put the correct sign X Yeart Year2 Year 3 A5. Free Cash Flows for New Machine (FCF_new): Year FCF new *The sum of A1-44 Screenshot B1. Existing Machine: Year1 Year2 Year3 Year0 X NOPAT + Dep. Year1 Year2 Year3 B2. Cash Flows from Working Captial (WC): Year (-) change in NOWC* *make sure to put the correct sign ] B3. Cash Flows from the Initial Outlay (10): Year X (-) 10* X *make sure to put the correct sign B4. Cash Flows from Terminal Cash Flows (TCF): TCF* X Year3 *make sure to put the correct sign Year1 Year2 Year3 B5. Free Cash Flows for Existing Machine (FCF_Old): Yearo FCF_Old* *The sum of B1-B4 C. Relevant CF: Yearo Year1 Year2 Year3 Relevant FCF Screenshot D. NPV = Replcement Project: KFUPM is planning to replace it heavy duty printing machine with a newer model that is faster and better quality. The existing machine has a life of 5 years and 2 years of them has passed. Now KFUPM is evaluating replacing this machine with the newer model which has a life of 3 years. KFUPM hired you to analyze the proposed replacement and you collected the below information. New Machine: Life of machine: 3 years The cost of the new machine is SAR 1,187 The machine will increase the gross profil every year by SAR 359 The market value of the machine when sold at the end of its life is SAR 199 If replaced, then the networking capital (NOWC) will increase every year by SAR 21 KFUPM will recover all investments in working capital at the end of the new machine's life (after 3 years). Old Machine: Life of machine is 5 years. 2 years has past. Effective remaining life of the machine is 3 years Orginal cost of the existing machine is SAR 803 Notes: 1. Use 2 Decimals 2. It is advisable to solve the question using Excel or on paper, and then put your relevant answers here: Depreciable base SAR is A1. New Machine: Year0 Yeart Year3 NOPAT + DPD. Year2 O Yeart 0 0 Year2 0 Year 3 A2. Cash Flows from Working Captial (WC) Year (-) change in NOWC *make sure to put the correct sign A3. Cash Flows from the Initial Outlay (10): Yearo (-) 10 *make sure to put the correct sign X x * X Year3 A4. Cash Flows from Terminal Cash Flows (TCF): x TCF *make sure to put the correct sign X Yeart Year2 Year 3 A5. Free Cash Flows for New Machine (FCF_new): Year FCF new *The sum of A1-44 Screenshot B1. Existing Machine: Year1 Year2 Year3 Year0 X NOPAT + Dep. Year1 Year2 Year3 B2. Cash Flows from Working Captial (WC): Year (-) change in NOWC* *make sure to put the correct sign ] B3. Cash Flows from the Initial Outlay (10): Year X (-) 10* X *make sure to put the correct sign B4. Cash Flows from Terminal Cash Flows (TCF): TCF* X Year3 *make sure to put the correct sign Year1 Year2 Year3 B5. Free Cash Flows for Existing Machine (FCF_Old): Yearo FCF_Old* *The sum of B1-B4 C. Relevant CF: Yearo Year1 Year2 Year3 Relevant FCF Screenshot D. NPV =