Jack Mitchell, a manager of the Plate Division for the Granite City Manufacturing Company, has the opportunity to expand the division by investing in additional machinery costing $495,000. He would depreciate the equipment using the straight-line method, and expects it to have no residual value. It has a useful life of 9 years. The firm mandates a required after-tax rate of return of 14% on investments. Jack estimates annual net cash inflows for this investment of $130,000 before taxes, and an investment in working capital of $5,000. Tax rate is 30% (Click the icon to view the present value factor table.) (Click the icon to view the present value annuity factor table.) (Click the icon to view the future value factor table.) (Click the icon to view the future value annuity factor table.) Read the requirements. Requirement 1. Calculate the net present value of this investment. (Round interim calculations and your final answers to the nearest whole dollar. Use a minus sign or parentheses for a negative net present value.) PV factor Net Cash Total Present at i=14%, n=9 Inflow Value Net present value: Present value of annuity of equal annual: After-tax cash flows from operations After-tax cash savings from depreciation per year = per year = Present value of working capital Net initial investment Net present value 1. Calculate the net present value of this investment. 2. Calculate the accrual accounting rate of return on initial investment for this project 3. Should Jack accept the project? Will Jack accept the project if his bonus depends on achieving an accrual accounting rate of return of 14%? How can this conflict be resolved