14. A business is considering the purchase of equipment which is projected to decrease labor costs over the next three years. Using the information presented in the following table and the methods presented in class (including the spreadsheet layout), create a spreadsheet which presents the calculation of the annual cash flows. Assume that the equipment is sold for the salvage value at the end of the third year. Using the risk- adjusted cost of capital provided, calculate, and present the NPV and IRR for the project. Should the equipment be purchased? Show all work (feel free to attach properly formatted work from Excel). Purchase Price Shipping and Installation Increase in Working Capital Projected Annual Labor Cost Savings Projected Salvage Value $ 107,000.00 Risk-Adjusted Cost of Capital $ 25,000.00 Tax Rate $ 15,000.00 MACRS Rate Year 1 $ 65,000.00 MACRS Rate Year 2 $ 19,000.00 MACRS Rate Year 3 MACRS Rate Year 4 13% 35% 33% 45% 15% 7%