Determine if buying this equipment is a good project

4. Determine if buying this equipment is a good project. cost 1,000,000 Be 1.4 Net Working Capital Depreciation Interest Expense Net Income CAPEX Free Cash Flow Equipment sold at book $500,000 Equity Rf4% Rin 100/0 Year O Yearl Year 2 o 5000 -5000 $500,000 Debt Rdebt - Taxes 40% Year 1 40,000 5,000 100,000 0 Year 1 Year 2 50,000 5,000 500,000 Year 2 440,000