Downtown Industries is purchasing a new high-speed 3-D printer. The printer costs $225,000 today and will be depreciated straight-line over 5 years to a salvage value of zero. Downtown Industries anticipates that the printer can be sold in 5 years for $65,000. The printer will allow Downtown Industries to generate additional revenues on their popular garden ornaments by $250,000 per year. The increased costs of production are $175,000 per year. The new 3-D printer will require an initial one-time increase in working capital, mainly for materials and parts in the amount of $20,000. The working capital will be needed throughout the life of the project and it will be completely recaptured at the end of the project when the printer is sold. The firm's marginal tax rate is 35% and the discount rate is 12%.

Part A) What is the initial cashflow (at time 0)?

Part B) What is the operating cash flow in years 1-4?

Part C) What is the total cash flow in year 5? (show your work)

Part D) What is the NPV of this investment?

part E) Should Downtown buy this printer? (yes,no)