All parts are under 1 question therefore they can be answered per your policy.

1. You are seeking approval for the purchase of a new printing press. The new press is estimated to cost $80,000; sales tax is estimated to be $4,000; transportation and installation is estimated to be $5,000, and operator training is estimated to be $2,000. The new press will have an expected life of 20 years. After 20 years the press will be retired and its future market value is estimated to be $5,000. When placed in-service, this new press is projected to produce additional annual revenues of $30,000 the first year increasing by 5% each year thereafter over the its expected 20-year life. Overhead and maintenance expenses are estimated to be $4,000 the first year increasing by $500 each year thereafter over its expected 20-year life. Given that your companys MARR is 15%, you decide to perform a present worth analysis.

1. Show your cash flow diagram (neatness and detail count).
2. What is the PW evaluated at MARR in dollars? (Show all your work).
3. Based on your PW analysis, should you recommend this purchase for funding? Be specific
4. Given that the company cannot reinvest its revenues at a rate greater than MARR, what is your calculated ERR (external rate of return) evaluated at =15%?