Analyze the following scenario: Duncombe Village Golf Course is considering the purchase of new equipment that will cost $1,200,000 if purchased today and will generate the following cash disbursements and receipts. Should Duncombe pursue the investment if the cost of capital is 8 percent? Why? Clearly label your calculations in your analysis. Year 1 Cash Receipts 1,000,000 Cash disbursements 500,000 Net Cash Flow 500,000 ---------------------------------------------------------------------------------------- year 2 Cash Receipts 925,000 Cash disbursements 475,000 Net Cash Flow 450,000 -------------------------------------------------------------------- year 3 Cash Receipts 800,000 Cash disbursements 450,000 Net Cash Flow 350,000 -------------------------------------------------------------------------------------- year 4 Cash Receipts 750,000 Cash disbursements 430,000 Net Cash Flow 320,000