2 A new start up company has contemplated investing $250,000 in new equipment. 3 Their analysis has shown that this new machinery will generate the following cash flows: 4 5 6 Year Annual Cashflow 7 1 $ 10,000 8 2 $ 30,000 9 3 $ 40,000 10 4 $ 11 5 10 $ 12 13 14 15 16 17 6819 7 SASASA ASASA 50,000 50,000 $ 60,000 $ 60,000 $ 75,000 $ 75,000 10 $ 75,000 23 19 7802222 18 The minimum rate of return that they want to earn is 13% Compute the present value? 21 Based on these projections, please calculate the following for this project: Q1 Q2 Compute the net present value? 24 Q3 Compute the estimate for the IRR? 25 25 Q4 Should the company proceed with this investment?