AIT Construction Company is into the establishment of theater halls for cinematograph is considering purchasing equipment that costs Ghc23,000. The equipment has an estimated useful life of 5 years and no salvage value. B Company believes that the annual cash inflows from using 5 the equipment will be Ghc65,000 Required Calculate the net present value of the equipment assuming that B Company's cost of capital is 10%. Is the equipment an acceptable investment? Calculate the net present value of the equipment assuming that B Company's cost of capital is 12%. Is the equipment an acceptable investment? Explain the use of payback period and what are the flaws of the method as compared to NPV method of evaluating cash flows