The Darlington Equipment Company purchased a machine 5 years agoat a cost of $100,000. The machine had an expected life of 10 yearsat the time of purchase, and it is being depreciated by thestraight-line method by $10,000 per year. If the machine is notreplaced, it can be sold for $10,000 at the end of its useful life.A new machine can be purchased for $160,000, including installationcosts. During its 5-year life, it will reduce cash operatingexpenses by $50,000 per year. Sales are not expected to change. Atthe end of its useful life, the machine is estimated to beworthless. MACRS depreciation will be used, and the machine will bedepreciated over its 3-year class life rather than its 5-yeareconomic life; so the applicable depreciation rates are 33%, 45%,15%, and 7%. The old machine can be sold today for $60,000. Thefirm's tax rate is 40%. The appropriate WACC is 9%. If the newmachine is purchased, what is the amount of the initial cash flowat Year 0? Round your answer to the nearest dollar. Negative amountshould be indicated by a minus sign.

$ What are the incremental net cash flows that will occur at theend of Years 1 through 5? Round your answers to the nearest dollar.Year 1 ___Year 2 ____Year 3 ___Year 4____ Year 5___$ $ $ $ $

What is the NPV of this project? Round your answer to thenearest cent. Negative amount should be indicated by a minus sign.$ Should Darlington replace the old machine?