Kraemer Company is trying to reduce its cost structure in an effort to boost profits. It is looking at automating parts of its production process. It is evaluating two different pieces of equipment to accomplish the cost reductions. Below are the free cash flow estimates associated with the two projects. WACC 9% Equip A Year 1 Cash Flows Year 2 Today Year 3 Year 4 Cost of equipment Shipping & handling Start-up expenses Total Investment ] (100,000) (5,000) (15,000) (120,000) Labor savings (after tax) Salvage value (after tax) Total Savings $ $ 15,000 $ $ 15,000 $ 35,000 $ $ 35,000 $ 50,000 $ $ 50,000 $ 60,000 5,000 65,000 $ Calculate: NPV IRR Payback MIRR PI