The Lancaster Corporation purchased a piece of equipment three years ago for $250,000. It has an asset depreciation range (ADR) midpoint of eight years. The old equipment can be sold for $97,920.

A new piece of equipment can be purchased for $360,000. It also has an ADR of eight years.

The firm has a 36% tax rate and a 9% cost of capital.

Assume the old and new equipment would provide the following operating gains (or losses) over the next six years:

Year New Equipment Old Equipment
1 $100,000 $36,000
2 86,000 26,000
3 80,000 19,000
4 72,000 18,000
5 62,000 16,000
6 43,000 (9,000)

What is the old equipment value at T0, the amount kept after the sale of the old equipment at T0, net outflow at T0, new equipment book value at T6, net cash flow amounts at T1, T2, T3, T4, T5 and T6, and NPV?