Clark Paints:

Cost of new equipment	$ 200,000
Expected life of equipment in years	5	years
Disposal value in 5 years	$ 40,000
Life production - number of cans	5,500,000
Annual production or purchase needs	1,100,000
Number of workers needed	3
Annual hours to be worked per employee	2000	hours
Earnings per hour for employees	$ 12.00
Annual health benefits per employee	$ 2,500
Other annual benefits per employee-% of wages	18%
Cost of raw materials per can	$ 0.25
Other variable production costs per can	$ 0.05
Costs to purchase cans - per can	$ 0.45
Required rate of return	12%
Tax rate	35%

The rest of my calculations

Productions costs 422,460

Purchase cost would be 495,000

Total Cash flow 58,351

annual Rate of return is 13.18%

net present value is 33,035

IRR Function is 18% 2. Would you recommend the acceptance of this proposal? Why or why not? Prepare a short double-spaced Word paper elaborating and supporting your answer