Martin & Kenneth Luxury Retail Stores are planning to expand by acquiring new equipment. This investment will require a replacement of the old equipment. The acquisition cost of the new equipment is $500,000. The new investment requires an additional outlay of $45,000 to cover shipping and all the other charges. The old equipment can be sold for $90,000 in the market and the books shows the same amount. The applied tax rate for this firm is 40.00%. This new equipment investment project is expected to increase sales revenue by $60,000, increase operating costs by $20,000 for the first year. There is also a $10,000 incremental net working capital after the project is undertaken. The old equipment is fully depreciated and the new equipment will be depreciated straight-line to a zero value over the twenty-year economic life of a project. There is $20,000 estimated salvage on the new equipment at the end of its economic o Ben @ This new equipment investment project is expected to increase sales revenue by $60,000, increase operating costs by $20,000 for the first year. There is also a $10,000 incremental net working capital after the project is undertaken. The old equipment is fully depreciated and the new equipment will be depreciated straight-line to a zero value over the twenty-year economic life of a project. There is $20,000 estimated salvage on the new equipment at the end of its economic life. What are the net investment and net cash flow for the first year for this investment? O NINV of $545,000 and NCF of $36,000 O NINV of $545,000 and NCF of $32,000 O NINY of $455,000 and NCF of $32,000 ONINV of $455,000 and NCF of $36,000