Jane and Ana, tennis consultants, are interested in buying an automated system to analyze arm and leg movements for their tennis students. They feel that they could charge $100 per hour to students to use this machine. They have received three competing bids for such a system. But as their skills relate more to tennis, they are confused about which to accept. Useful life 5 years.

initial investment in equiment 60000

working capital needs, returned at end of project life 5000

annual maintenance costs 10000

salvage value at ene of year 5: 10000

number of hours billed to students 250

Compute NPV with a discount rate of 12%., payback,AAROR pretax and after tax. tax rate 40%