The Spring Water Corporation is considering replacing a purification machine with an updated model. The original machine, purchased 3 years ago, cost $50,000 and was being depreciated under the 5-year MACRS schedule. If sold today, the Spring Water would receive $15,000. In three years, it is estimated that the machine will sell for $1,000. The new machine will cost $75,000 and will be used for three years, being depreciated under the 3-year MACRS schedule. A total of $10,000 in net working capital will be required to get the new machine up and running, but will be freed up at the time the new machine is sold. In three years, the new machine can be sold for $25,000. It is estimated that the new machine will result in a cost savings of $75,000 per year. Spring Water is in the 25 percent tax bracket and its required rate of return is 10 percent. Spring Water spent $35,000 for a marketing survey last year to determine if clients would enjoy the features of the new machine.
A. Calculate the initial costs of the replacement project.
B. Calculate the operating cash flows for each of the three years under which the replacement project is being evaluated.
C. Calculate the terminal cash flows in year 3 associated with the disposal of the new machine.

How do I uo this? Please help. Totally Lost!