(a)Calculate the initial investment amount.

(b) Calculate the projects cash payback period.

(c) Calculate the projects net present value.

(d) State whether or not the company should replace its current equipment with the new high-tech equipment.

- /20 = Current Attempt in Progress Splish Inc. wants to replace its current equipment with new high-tech equipment. The existing equipment was purchased 5 years ago at a cost of $126,000. At that time, the equipment had an expected life of 10 years, with no expected salvage value. The equipment is being depreciated on a straight-line basis. Currently, the market value of the old equipment is $44,200. The new equipment can be bought for $174,010, including installation. Over its 10-year life, it will reduce operating expenses from $ 192,300 to $146,600 for the first six years, and from $204,900 to $193,500 for the last four years. Net working capital requirements will also increase by $21,000 at the time of replacement. It is estimated that the company can sell the new equipment for $24,400 the end of its life. Since the new equipment's cash flows are relatively certain, the project's cost of capital is set at 10%, compared with 15% for an average-risk project. The firm's maximum acceptable payback period is 5 years. Click here to view the factor table. (a) Calculate the initial investment amount. Initial investment $ e Textbook and Media