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The Woodruff Corporation purchased a piece of equipment threeyears ago for $247,000. It has an asset depreciation range (ADR)midpoint of eight years. The old equipment can be sold for$92,250.A new piece of equipment can be purchased for $305,000. It also hasan ADR of eight years.Assume the old and new equipment would provide the followingoperating gains (or losses) over the next six years: YearNew EquipmentOld Equipment1...............$78,250$25,5002...............75,25015,0003...............68,7509,5004...............58,5006,2505...............51,0006,5006...............44,250-8,250The firm has a 36 percent tax rate and a 9 percent cost ofcapital.What is the net cost of the new equipment? Round your solutionto two decimal places.What is the present value of incremental benefits? Round yoursolution to two decimal places.What is the NPV of this replacement decision? Round yoursolution to two decimal places.