Based on the following data, should a company proceed with the acquisition of equipment? Why? How would the acquisition fit into the efforts to turn the company around?

present value (PV) of the projected after tax cash flows for years 1-8.
Year	millions
0	-191.10
1	-9.30
2	41.78
3	57.30
4	45.62
5	40.38
6	63.12
7	12.33
8	-1.73
net present value (NPV) of the projected after tax cash flows for years 0-8.
Year
0	($10.20)
1	($28.61)
2	$1.72
3	$47.21
4	$82.16
5	$112.63
6	$164.98
7	$169.83
8	$161.79
internal rate of return (IRR)
13%

Cost of the new manfactoring equipment (at year=0)			$	191.1	million
Corporate income tax rate - Federal				21.0%
Corporate income tax rate - State of Maryland				8.0%
Discount rate for the project				6.0%
			After-tax Cash Flow Timeline
	(all figures in $ millions)
Year	Projected Cash Inflows from Operations	Projected Cash Outflows from Operations	Depreciation Expense	Projected Taxable Income	Projected Federal Income Taxes	Projected State Income Taxes		Projected After-tax Cash Flows
0								(191.1)
1	850.0	840.0	(23.9)	(13.9)	(2.9)	(1.1)		(9.9)
2	900.0	810.0	(23.9)	66.1	13.9	5.3		46.9
3	990.0	870.0	(23.9)	96.1	20.2	7.7		68.2
4	1,005.0	900.0	(23.9)	81.1	17.0	6.5		57.6
5	1,200.0	1,100.0	(23.9)	76.1	16.0	6.1		54.0
6	1,300.0	1,150.0	(23.9)	126.1	26.5	10.1		89.5
7	1,350.0	1,300.0	(23.9)	26.1	5.5	2.1		18.5
8	1,320.0	1,300.0	(23.9)	(3.9)	(0.8)	(0.3)		(2.8)
			Example - Computing Projected After-tax Cash Flows
	For Year 4	(all figures in $ millions)
	Projected Cash Inflows from Operations		1005.0			Projected Cash Inflows from Operations			1005.0
minus	Projected Cash Outflows from Operations		(900.0)		minus	Projected Cash Outflows from Operations			(900.0)
minus	Depreciation Expense		(23.9)		minus	Depreciation Expense			(23.9)
equals	Projected Taxable Income		81.1		minus	Projected Federal Income Taxes			(17.0)
					equals	Projected State Income Taxes			(6.5)
	Projected Taxable Income		81.1			Projected After-tax Cash Flows			57.6
times	Corporate income tax rate - Federal		21.0%
equals	Projected Federal Income Taxes		17.0
	Projected Taxable Income		81.1
times	Corporate income tax rate - State		8.0%
equals	Projected State Income Taxes		6.5