1. Zebra micro-devices, Inc. is considering an investment in new equipment that will cost $120,000 and is estimated to provide the following annual savings over its 5-year life: Year Savings estimate 1 $50,000 2 $40,000 3 $30,000 4 $20,000 5 $10,000 a) Should the company acquire the new equipment if it can earn a return of 12% on its investments? b) Should the company acquire the new equipment if it can earn a return of 9% on its investments? c) Use the principal of value additivity to calculate the present value of the savings. What is the implied annual rate of return is associated with the new equipment?