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DataPoint Engineering is considering the purchase of a new piece of equipment for $ 2 0 0 , 0 0 0 . It has an

DataPoint Engineering is considering the purchase of a new piece of equipment for $200,000. It has an eight-year midpoint of its asset depreciation range (ADR). It will require an additional initial investment of $100,000 in nondepreciable working capital. $25,000 of this investment will be recovered after the sixth year and will provide additional cash flow for that year. Income before depreciation and taxes for the next six are shown in the following table. Use Table 12-11, Table 12-12. Use Appendix B for an approximate answer but calculate your final answer using the formula and financial calculator methods.
\table[[Year,Amount],[1,$173,000
B. Determine the annual cash flow for each year. Be sure to invlude the recovered working capital year 6.
C. Determine tge weighted average cost of capital.
D-1. Determine the net present value.
d-2. Should dara point purchase new equipment? Yes or No
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