I need help with the case below. Any assistance would be greatly appreciated. Thank you

C24-40. NPV and Project Reevaluation with Taxes, Straight-Line Depreciation In 2015, the Bayside Chemical Company prepared the following analysis of an investment pro- posal for a new manufacturing facility: Predicted 12% Cash Year(s) Present Inflows Present of Cash Value (outflows) Value of Flows Factor (A) Cash Flows (B) (C) (A) X (C) Initial investment Fixed assets . $(810,000) O 1.00000 $ (810,000) Working capital . . . . . (100,000) 1.00000 (100,000) Operations Annual taxable income without depreciation . . . .... . . . .. .. 310,000 1-5 Taxes on income ($310,000 X 0.40) . . . .. . . . . . 3.60478 1,117,482 (124,000) 1-5 3.60478 Depreciation tax shield. (446,993) 64,800* 1- 5 3.60478 233,590 Disinvestment Site restoration . . . . . . 80,000 5 0.56743 Tax shield of restoration ($80,000 X 0.40) (45,394) 32,000 0.56743 18, 158 Working capital . . . . . . . . . . 100,000 0.56743 56,743 Net present value of all cash flows. . ..... .... $ 23,586 *Computation of depreciation tax shield: Annual straight-line depreciation ($810,000 = 5). $162,000 Tax rate . . . X 0.40 Depreciation tax shield . $ 64,800 Because the proposal had a positive net present value when discounted at Bayside's cost of capital of 12 percent, the project was approved; all investments were made at the end of 2016. Shortly after production began in January 2017, a government agency notified Bayside of required additional expenditures totaling $200,000 to bring the plant into compliance with new federal emission regulations. Bayside has the option either to comply with the regulations by Decem- ber 31, 2017, or to sell the entire operation (fixed assets and working capital) for $250,000 on December 31, 2017. The improvements will be depreciated over the remaining four-year life of the plant using straight-line depreciation. The cost of site restoration will not be affected by the improvements. If Bayside elects to sell the plant, any book loss can be treated as an offset against taxable income on other operations. This tax reduction is an additional cash benefit of selling. REQUIRED a. Should Bayside sell the plant or comply with the new federal regulations? To simplify calcula- tions, assume that any additional improvements are paid for on December 31, 2017. b. Would Bayside have accepted the proposal in 2016 if it had been aware of the forthcoming federal regulations? c. Do you have any suggestions that might increase the project's net present value? (No calcula tions are required.) 24-41. Post-Audit and Reevaluation of Investment Proposal: NPV s evaluating a