Description Kids Moving (KM), a small not-for-profit sports center is considering purchasing a new set of pitching machines they currently rent. There will be annual maintenance on the machines that KM will now have to pay. And at the end of 5 years, the machine will be worthless and you will have to pay to have it taken away. The following data has been obtained: Cost of equipment needed $444,444 Working capital needed (released at end of project) Annual savings on rent not 18 paid Annual maintenance $66,666 expense Disposal cost at the end of tags the project cost of capital 7% * You will have to pay $8,888 to have the machine taken away. Complete the following questions and submit as a Microsoft EXCEL document 1. Compute the NPV and the IRR of the investment 2. Should the KM invest in the project? 3. What would your answer be if the purchase will require additional staff training all during year 1 of $11,000? (Net Present Value? IRR? Decision?) W ent Value? IRR? Decision?) Steps 1. Put in the year - Don't forget to start with time 0 (now). 2. Put in the interest rate (not the tax rate-remember this is a percentage). 3. Skip a line. 4. Put in the cash inflows and outflows. 5. Reference the taxes if applicable. 6. Compute the cash flows and highlight. 7. Compute the PV of the cash flows (see above). 8. Compute the net present value by summing the PV of the cash flows from step G (do not use the NPV key). 9. Compute the internal rate return of the cash flows (highlighted amount). 10. Evaluate - consider mission, strategy and risk, ethical implications for all stakeholders. Note: you must use Excel following the model above to receiv full credit