Company Z is considering purchasing a new piece of equipment. The equipment costs $3,200,000 and has an expected useful life of 8 years with no residual value. It will generate additional annual revenues of $800,000 and will incur annual operating costs of $150,000. The equipment will be depreciated on a straight-line basis. The company's cost of capital is 11%, and the tax rate is 32%.

Requirements:

1. Calculate the annual depreciation expense.
2. Compute the annual after-tax net cash flows.
3. Determine the NPV of the equipment.
4. Find the IRR of the equipment.
5. Assess whether the investment should be made.