A company is evaluating the purchase of a new equipment costing $600,000. The equipment has a useful life of 7 years and will have no salvage value. Expected net operating income after depreciation is $120,000 per year. The company’s tax rate is 30%. The present value factors for 7 years are:

Discount Rate	Present Value Factor
9%	5.033
10%	4.868
11%	4.713
12%	4.564
13%	4.423

You are required to:

1. Calculate the annual depreciation expense.
2. Compute the annual after-tax cash flows.
3. Determine the NPV at each discount rate.
4. Find the IRR of the investment.

State whether the investment is advisable based on NPV and IRR analysis.