A company is examining investment in a new equipment. Related information are as followings; - Equipment purchase price: $250,000 (Eligible for 100% bonus depreciation) - Equipment economic life: 4 years - Salvage value: $20,000 - New Sales: $200,000 per year - Variable costs: 60% of sales - Inventory will rise by $25,000 - Account payable will rise by $5,000 - Tax rate: 25%, WACC: 10% a)What is the after tax equipment costs? What is the NPV of this investment? b) Should the company invest in the new equipment? Why?