3. Using His existing pump , an oil company Is pumping oil from a well that is expected to last two more years . A now pump costs $50, and would accelerate the cash flows as indicated below . The discount rate is 20%. For decision making purposes , the NPV of buying & now pump is approximately :" 2 : 0. 2 Time 09 Cash flows with existing pump 60 A Cash flows with now pump - 50 80 8:02 - 90 70 - 1.0 0. 2 2 \\50 * * 1. 1" AT \\$130 100 ! While that has A lay book value of $And and can be sold for $200. IT the tax rate 15`