Marshall Tucker Enterprises is considering an investment in a production equipment upgrade. The cost is expected to be $700,000. The IRS depreciation life is 7 years but the firm expects to sell the used equipment after year 6. The equipment is expected to reduce annual cash operating costs by $180,000 and be sold for $80,000 at the end of year 6. The firm is in the 35% tax bracket and uses a hurdle rate of 12% to evaluate capital budgeting investments. At the end of year 3 a one time software upgrade costing $40,000 is expected to be needed. This cost is fully tax deductible at the end of year 3. Write your answers beside the end of each sentence below. A-What is the Net Present Value of the Project? B-What is the after tax cash flow provided by the sale of the used equipment? C-What is the total present value of all cash inflows? D-What is the total present value of all cash outflows? E-Is the IRR above or below 12% ? Essay Toolbar navigation. BIVS