DataPoint Engineering is considering the purchase of a new plece of equipment for $220,000. It has an eight-year midpoint of its asset depreciation range (ADR), It will require an additional initial investment of $120,000 in nondepreciable working capital. $30,000 of this Investment will be recovered after the sixth year and will provide additional cash flow for that year. Income beford depreciation and taxes for the next six are shown in the following table. Use Joble 12-11. Table 12-12. Use Appendix. 8 for an approximate answer but calculate your final answer using the formula and financial calculator methods. The ax rote is 25 percent. The cost of copital must be computed based on the following: 12. Compute the present value of the total annual benefits. (Do not round intermediate calculations and round your answer to the nearest whole dollar.) k-1. Compare the present value of the incremental benefits to the net cost of the new equipment ( ). (Do not round intermediate calculations. Negative amount should be indicated by a minus sign. Round yout answer to the nearest whole dollar,) k.2. Should the replacement be undertaken