Best Corp. plans to buy new computer equipment that costs $90,000. Best Corp. expects the equipment to provide cash inflows of $45,600 each year for the next four years and additional operating outflows of $6,500 in Year 1, $6,800 in Year 2, $7,125 in Year 3, and $9,000 in Year 4. They will sell the equipment for $12,500 at the end of four years.

The company has a cost of capital of 16%.

Copy the table below;

	Year 0	Year 1	Year 2	Year 3	Year 4
Initial Investment
Cash Inflows
Cash Outflows
Salvage Value
Net Cash Flow

Part A.) Please prepare the schedule of annual cash flows.

Part B.) Calculate the Internal Rate of Return (IRR) for the cash flows.

Part C.) Based on the IRR calculated, is this investment acceptable? Briefly explain why.

Part D.) Calculate the NPV of the expected cash flows.

Part E.) Based on the NPV calculated, is this investment acceptable? Briefly explain why.

Part F.) If the Cost of Capital is 22% instead of 16% is the investment acceptable?

Part G.) Using the original information if the machine costs $105,000 instead of $90,000 would it be an acceptable investment?