Market Top Investors, Incorporated, is considering the purchase of a $$425,000$ computer with an economic life of five years. The computer will be fully deprecated over five years using the straight $-$ line method, at which time it will be worth $$35,000.$ Below I am providing some more information about the main characteristics and implications of the project: the computer will replace the office employees who combined annual salares are $$95,000.$ The machine will immediately lower the firms required net working capital by $$40,000.$ The computer will allow the company to undertake a diversified set of projects, that will require an investment in inventory equal to $$12,000$ and a reducation in acccounts receivables towards clients equal to $$2,000$ for each of the $4$ subsequent to year $0($this is the year when the computer is bought$).$

Any amount invested in net working capital will need to be replaceed once the machine is sold and corporate tax rate is $22$ percent. The appropirate discount rate is $9$ percent.

$1.$ Compute the After $-$tax salvage value of eqipment?

$2.$ Compute the cash outlay of the project at time $0?$

$3.$ Compute the operating cash flows for Market Top Inves. Incorp for years $1-4?$

$4.$ Construct the firms total cashflow $($operating cash flow AND total cash flow of investment$)$ in year $5?$

$5.$ Should the project be accepted or rejected $,$ calculate the NPV of the project, explain your answer?