Cuestion 1. (25 Marks) Your company is interested in acquiring a new high-speed label prnter at a cost of $250,000. The niachine will have to be modified for another $35.000. The company expects to sell the label printer for $110.000 at the end of year 4. (For depreciation purposes it falls in the MACRS 3 class which allows full cost recovery in four years in the annual rate of 33%. 45%, 15% and 7% for years 1-4 respectively). The fim's tax rate is 30% and tax is paid in the year that each revenue amount i received. Operating the equipment will require working capital of $20.000. The new equipment is expected to increase revenues tefore textby $50,000 per annum. Given that your firm's cost of capital is 12%, determine: (2) What are the net operating cash flows in years 1, 2 and 3% (10 marks) (1) What is the terminal cash flow (5 marks) :) in your opinion should the equipment be purchased (10 marks)