All Present Pere an aramadings and assistantake a product in canady or buy it from for the next five years ARAM Malay the Allamang na lase positive (+), negative) BE INE) no electrons catalas when er is daar lump sus (LS Annuity er Lump Sum Elect on Cashs Flors When Cash Flows Occur na Cost to upgrade current equipment today. 2. Salvage value from equipment in your five of the poster 3. Cost or new packaging equipment for project 4. Additional operating costs incurred cach period over the life of the project 5. Overhaul of equipment in the third year of the project. 6. Annual labor savings from internal production. 7. Additional supervisor's salary for life of project. 8. Additional contribution margin generated over the life of the projects. 9. Annual material cost savings from new machine use. 10. Annual additional cash sales from new product. 11. Special foundation required for the installation of the equipment today. 12. Annual labor costs over the proposal's life. 105 Additional Practice Question: NU Method The Tour Guide Company of Addis, Boyle and Wylic is considering the purchase of a new van to place its old van. The new van would cost $30.000 today and it has an estimated useful We of years with yearly operating costs of $10000 per year. The old van currently costs $16.0 per year. The expected salvage value of 5-4,000. The old van could be sold today for $2.000. The wave new is also larger than the old one and will result in an additional 10 more to cach yea. Each tourist pass the company $3.00 per tour. Finally, the end of the third year the new van wood Required: Using the format below, determine if the new van is a good investe. Use the NPU technique and assume the company's cost of capital is 125. require an overhaul at a cost of 55,000 Amount of Cash Flows Year(s) Having Cash Flows today PY Discount Factor @ 129 PV of the Cash Flow Item 530,000 Youo 507 12,028 new van new su lold sn add um tota I-le 12,000 4.112 2,00 49,311 Net Present Value Why? Accept or reject