1. A firm wishes to secure a contract that is expected to yield the after-tax net cash flows at the end of each year listed below. To secure the contract, the firm must spend $30,000 today to retool its plant. This retooling will have no salvage value at the end of eight years. The firm needs to earn at least a 996 rate of return on its investments. . What is the present value of this project? What is the net present value of this project? . What is the profitability index of this project? . What is the payback period for this project? What is the discounted payback period? . Is the internal rate of return higher or lower than 996 for this project (hint: you don't have to do any further calculations to answer this part)? . Should the firm make this investment (assume they have the $30,000 available)? After-tax Net Cash Flow $4,000 $4,500 $7,000 $8,000 $9,000 $7,000 $5,000 $3,000 Year 4