4. Your company is considering purchasing a new piece of equipment for $235,000, and it would cost another $22,000 to modify it for special use by your firm. The equipment falls into the MACR 3-year class (33%, 45%, 15%, 7%), would be sold after 3 years for $15,000. Use of the equipment would require an increase in net working capital of $5,000. The equipment would have no effect on revenues, but it is expected to save the firm S110,000 per year in before-tax operating costs. The firm's marginal federal- plus-state tax rate is 40%. ur company has raised a total of $500 million for projects ($300 million from bond issues, $150 million in stock (IPO) and $50 million in preferred stock). The bonds have 10 years left to maturity, are 8% bonds, and sell for $87538 in the secondary rmarket. The company's stock is expected to pay a dividend of S1.75 next year, and is trading at $25 on the NYSE. The company's growth rate is estimated at 7%. The co mpany's preferred stock is trading at $18.75 and will pay a dividend of $3.00 next year. What are the NPV and IRR of this project? 4. Your company is considering purchasing a new piece of equipment for $235,000, and it would cost another $22,000 to modify it for special use by your firm. The equipment falls into the MACR 3-year class (33%, 45%, 15%, 7%), would be sold after 3 years for $15,000. Use of the equipment would require an increase in net working capital of $5,000. The equipment would have no effect on revenues, but it is expected to save the firm S110,000 per year in before-tax operating costs. The firm's marginal federal- plus-state tax rate is 40%. ur company has raised a total of $500 million for projects ($300 million from bond issues, $150 million in stock (IPO) and $50 million in preferred stock). The bonds have 10 years left to maturity, are 8% bonds, and sell for $87538 in the secondary rmarket. The company's stock is expected to pay a dividend of S1.75 next year, and is trading at $25 on the NYSE. The company's growth rate is estimated at 7%. The co mpany's preferred stock is trading at $18.75 and will pay a dividend of $3.00 next year. What are the NPV and IRR of this project