Consider the case of Cambridge Equipment Co. Cambridge Equipment Co. currently earns annual revenues of $350,000 and incurs total operating expenses (excluding depreciation and interest expense) of 40.00% of revenues. Its earnings are taxed at a rate of 40%. Today, its budgeting committee is evaluating the purchase of a new router. The router is expected to cost $75,000, plus $4,000 in freight and setup expenses, and will be depreciated using straight-line depreciation. It is expected that the router will have a useful life of six years and a salvage value equal to 25.00% of its purchase price of 75,000. It is expected that the router will be sold for its book value,such that no capital gain or loss will be realized. It is further expected that the router will cause a 20.00% increase in the firm's annual sales and total operating expenses (excluding depreciation and interest expense). If the router is purchased, the firm will require an additional 10,000 in net working capital (NWC) Given this information, complete the following analysis: Question Answer What is the installed cost of the router? What is the net investment (NINV) of the investment? What are the net annual operating after-tax cash flows associated with this project? What is the project's last year (terminal) cash flow