$$Integrative: Complete Investment decision$$Wells Printing is considering the purchase of a new printing press. The total installed cost of the press is $$2\mathrm{.}14$ million. This outlay would be partially offset by the sale of an existing press. The old press has zero book$$ value, cost $$1\mathrm{.}02$ million $10$ years$$ ago, and can be sold currently for $$1\mathrm{.}18$ million before taxes. As a result of acquisition of the new$$ press, sales in each of the next $5$ years are expected to be $$1\mathrm{.}61$ million higher than with the existing$$ press, but product costs$($excluding depreciation$)$ will represent $51\%$ of sales. The new press will not affect the$$ firm's net working capital requirements. The new press will be depreciated under MACRS LOADING... using a$$ five$-$year recovery period. The firm is subject to a $40\%$ tax rate. Wells$$ Printing's cost of capital is $10\mathrm{.}9\%.($Note: Assume that the old and the new presses will eachhave a terminal value of $$0$ at the end of year $6.)$

a$.$ Determine the initial cash flow required by the new press. PLEASE INCLUDE THE FOLLOWING $(1.$ Installed cost of new press $2.$ Proceeds from sale of existing press $3.$ Taxes on sale of existing press $4.$ Total after$-$tax proceeds from sale $5.$ Initial cash flow$)$

b$.$ Determine the periodic cash inflows attributable to the new press. Calculate the periodic cash inflows attributable to the new press below: INCLUDE THE FOLLOWING FOR YEARS $1-6(1.$ Revenues $2.$ Expenses $3.$ Depreciation $4.$ Net profits before taxes $5.$ Taxes $6.$ Net profit after taxes $7.$ Operating cash inflows$)($Note: Be sure to consider the depreciation in

c$.$ Determine the payback period.

d$.$ Determine the net present value $($NPV$)$ and the internal rate of return $($IRR$)$ related to the proposed new press.

e$.$ Make a recommendation to accept or reject the new press, and justify your answer. ALL PERCENTAGES AND MACRS INCLUDED IN SCREENSHOT ATTACHED.

a$.$ Determine the initial cash flow required by the new press.

$($Click on the icon here $$ in order to copy the contents of the data table below into a spreadsheet.

Calculate the initial cash flow will be: $($Round to the nearest dollar.$)$

Rounded Depreciation Percentages by Recovery Year Using MACRS for

First Four Property Classes

Percentage by recovery year ${?}^{**}$

Installed cost of new press