(Appendix 13A and 13B) Vernal Company has been offered a seven-year contract to supply a part for the military. After careful study, the company has developed the following estimated data relating to the contract: cost of equipment needed Working capital needed to carry inventories Annual Net Cash Inflow Salvage Value of Equipment $300,000 $50,000 $90,000 $10, eee The equipment above would be in Class 7 with a 15% CCA rate. The company would take the maximum CCA allowable each year. It is not expected that the contract would be extended beyond the initial contract period. The company's after-tax cost of capital is 10%, and the tax rate is 30% Required: Use net present value analysis to determine whether or not the contract should be accepted. (Round all calculations to the nearest dollar) Use net present value analysis to determine whether or not the contract should be accepted (Round all calculations to the nearest dollar) Short Answer Toolbar navigation Igs IND 111 A 2