Consider this project:

The cost of the equipment will be $70,000 and this cost is incurred prior to any cash is received by the project.

The expected annual cash revenue of the project will be $30,000.

The expected annual cash outflows (expenses/costs) are estimated at being $11,000, excluding depreciation.

Your tax rate is 30% and you plan to depreciate the equipment on a straight-line basis for the life of the equipment. The discount rate you are assuming is 6%.

After 5 years the equipment will stop working and there will be no salvage value.

Requirements of the paper:

Perform the final NPV calculations and explain how you calculated the computations

Present your calculated answers in schedule format (a table) along with narrative.