1)Star Company is considering the purchase of an equipment for $64,000. It is expected to have a useful life of 4 years with no terminal disposal value. The manager estimates the following savings in cash operating costs: Required rate of return 18% and income tax rate 40%. Assume all cash flows occur at year-end except for initial investment amounts. Star Company uses Straight line depreciation method. Calculate the following: a-Net present value b- Cash back period 1)Star Company is considering the purchase of an equipment for $64,000. It is expected to have a useful life of 4 years with no terminal disposal value. The manager estimates the following savings in cash operating costs: Required rate of return 18% and income tax rate 40%. Assume all cash flows occur at year-end except for initial investment amounts. Star Company uses Straight line depreciation method. Calculate the following: a-Net present value b- Cash back period