ABC Company is considering the acquisition of a new piece of equipment to replace an old, outdated machine currently used in its business operations. The new equipment would cost $135,000 and is expected to last 9 years. The new equipment would require a repair of $25,000 in year four and another repair costing $80,000 in year eight. Purchasing this new equipment would require an immediate investment of $30,000 in working capital which would be released for investment elsewhere at the end of the 9 years. The new equipment is expected to have a $10,000 salvage value at the end of nine years. The new equipment is expected to generate a cost savings of $60,000 per year. ABC Company has a cost of capital of 16% and an income tax rate of 40%. Calculate the net present value (NPV) of the new equipment. If your answer is negative, place a minus sign in front of your answer with no spaces in between (e.g., -1234). You will need to use the present value table factors posted in carmen to answer this question. To access these factors, click modules and then scroll to the capital budgeting topic. Click on the link labeled present value table factors. No credit will be awarded for this question using a means other than these table factors to answer this question. Present Value of a Lump-Sum Periods auw 8 Rate of interest per period in percent 3% 5% 8% 9% 10% 12% 14% 0.97090.9524 0.9259 0.9174 0.9091 0.8929 0.8772 0.9426 0.9070 0.8573 0.8417 0.8265 0.7972 0.7695 0.9151 0.8638 0.7938 0.7722 0.7513 0.7118 0.6750 0.8885 0.8227 0.7350 0.7084 0.6830 0.6355 0.5921 0.8626 0.7835 0.6806 0.6499 0.62090.5674 0.5194 0.8375 0.7462 0.6312 0.5963 0.5645 0.5066 0.4556 0.8131 0.7107 0.5835 0.5470 0.5132 0.4523 0.3996 0.7894 0.6768 0.5403 0.5019 0.4665 0.40390.3506 0.7664 0.6446 0.5003 0.4604 0.4240 0.3606 0.3075 0.7441 0.6139 0.4630 0.4224 0.3855 0.3220 0.2697 0.7014 0.5568 0.3971 0.3555 0.3186 0.2567 0.2076 0.64190.4810 0.3152 0.2745 0.2394 0.1827 0.1401 0.6232 0.4581 0.2919 0.2519 0.2176 0.1631 0.1229 0.6050 0.4363 0.27030.2311 0.1978 0.1456 0.1078 0.5874 0.4155 0.2503 0.2120 0.1799 0.13000.0946 0.5703 0.3957 0.2317 0.1945 0.1635 0.11610.0829 0.5537 0.3769 0.2146 0.1784 0.1486 0.10370.0728 0.5375 0.3589 0.1987 0.1637 0.1351 0.0926 0.0638 0.4920 0.3101 0.1577 0.1264 0.1015 0.0659 0.0431 0.4776 0.29530.1460 0.1160 0.0923 0.0588 0.0378 10 15% 16% 20% 0.8696 0.8621 0.8333 0.7561 0.7432 0.6944 0.6575 0.6407 0.5787 0.5718 0.5520 0.4823 0.4972 0.4761 0.4019 0.4323 0.4104 0.3349 0.37590.3538 0.2791 0.3269 0.3050 0.2326 0.2843 0.26300.1938 0.2472 0.2267 0.1615 0.1869 0.1685 0.1122 0.1229 0.1079 0.0649 0.1069 0.0930 0.0541 0.0929 0.0802 0.0471 0.0808 0.0691 0.0376 0.0703 0.0596 0.0313 0.0611 0.0514 0.0261 0.0531 0.0443 0.0217 0.0349 0.0284 0.0126 0.0304 0.0245 0.0105 12 15 16 17 18 19 20 21 24 25 Present Value of an Annuity Periods 3% 5% 0.9709 0.9524 1.9135 1.8594 2.8286 2.7233 3.7171 3.5460 4.5797 4.3295 6 5.4172 5.0757 6.2303 5.7864 7.0197 6.4632 7.7861 7.1078 10 8.5302 7.7217 12 9.9540 8.8633 15 11.9379 10.3797 16 12.5611 10.8378 17 13.1661 11.2741 18 13.7535 11.6896 19 14.3238 12.0853 20 14.8775 12.4622 21 15.4150 12.8212 25 17.4132 14.0939 Rate of interest per period in percent 8% 9% 10% 12% 14% 15% 0.9259 0.9174 0.9091 0.8929 0.8772 0.8696 1.7833 1.7591 1.7355 1.6901 1.6467 1.6257 2.5771 2.5313 2.48692.4018 2.3216 2.2832 3.3121 3.2397 3.1699 3.0374 2.9137 2.8550 3.9927 3.88973.7908 3.6048 3.4331 3.3522 4.62294.48594.3553 4.1114 3.8887 3.7845 5.2064 5.0330 4.8684 4.5638 4.2883 4.1604 5.7466 5.5348 5.33494.9676 4.63894.4873 6.2469 5.9953 5.7590 5.3283 4.9464 4.7716 6.7100 6.4177 6.1446 5.6502 5.21615.0188 7.5361 7.1607 6.8137 6.1944 5.6603 5.4206 8.5595 8.0607 7.6061 6.81096.1422 5.8474 8.8514 8.3126 7.8237 6.9740 6.2651 5.9542 9.1216 8.5436 8.0215 7.1196 6.37296.0472 9.3719 8.7556 8.2014 7.2497 6.4674 6.1280 9.6036 8.9501 8.36497.36586.5504 6.1982 9.8182 9.1286 8.51357.4694 6.6231 6.2593 10.0168 9.2922 8.6487 7.5620 6.68706.3125 10.6748 9.8226 9.0770 7.8431 6.87296.4641 16% 0.8621 1.6052 2.2459 2.7982 3.2743 3.6847 4.0386 4.3436 4.6065 4.8332 5.1971 5.5755 5.6685 5.7487 5.8178 5.8775 5.9288 5.9731 6.0971 20% 0.8333 1.5278 2.1065 2.5887 2.9906 3.3255 3.6046 3.8372 4.0310 4.1925 4.4392 4.6755 4.7296 4.7746 4.8122 4.8435 4.8696 4.8913 4.9476