HTM3222 Individual Assignment 3 (5%) < Download this worksheet ands complete independently by following the instructions. You may submit a handwritten or typed answers as long as your calculations are showing. Show two decimal places where appropriate < Due date is Fri 12 April 23:59 on Blackboard Assignments. Events Expert Corp. is planning to acquire new equipment for a cost of $28,000. Management has already conducted and paid $15,000 for a marketing survey while delivery and installation costs are expected to be $1,900 and $400, respectively. Financing costs are $3,000 per year. The economic life of the investment is 5 years and the new equipment will depreciate straight-line to a zero value over 5 years. The management team expects this new equipment at the end of 5 years at a price of $5,000. < Events Expert Corp expects the acquisition to increase sales by $7,700 annually while cash operating costs are expected to increase by $800 annually. This investment will allow the replacement of old equipment which can be sold for $4,000. It has a book value of $5,000 that should to be depreciated for two more years. This will no longer be depreciated after we replace the old equipment. The marginal tax rate is 20% and the expected rate of return is 11%. < Additional net working capital of $500 will be needed immediately. When the project is terminated in 5 years, there no longer will be a need for this incremental working capital. < 1. Compute the net investment < 2. Compute the net cash flow for each of the five years of the project 3. What is the NPV of the project and should the project be accepted or not?