Murray, Inc., has assembled the estimates shown below relating to a proposed new product. These estimates are based on a 5-year project life. At the end of the project, the new equipment would be sold, the working capital would be available for other uses in the company, and the product would be discontinued. Murray uses a discount rate of 10%. (Ignore income taxes.)

Annual cash sales	$	675,000
Annual out-of-pocket cash expenses	$	510,000
Annual depreciation on new equipment	$	78,000
Initial cost of new equipment (at beginning)	$	450,000
Salvage value of equipment at the end of 5 years	$	75,000
Working capital requirement (at beginning, then returned at end)	$	90,000

Choose from among these PVIFs only:

3.791 Present Value of an Ordinary Annuity of $1 at 5 years, 10%

0.909 Present Value of $1 at 1 year, 10%

0.826 Present Value of $1 at 2 years, 10%

0.751 Present Value of $1 at 3 years, 10%

0.683 Present Value of $1 at 4 years, 10%

0.621 Present Value of $1 at 5 years, 10%

The following are each of the elements of the Net Present Value (NPV) of this project. For each element, use parentheses () for cash outflows, positive numbers for cash inflows, but nocommas (,), extra spaces, or dollar signs ($), and compute the following:

1. Discounted Cash Flows for only the initial the purchase of the equipment. $
2. Discounted Cash Flows for only the initial working-capital investment. $
3. Discounted Cash Flows for only the total cash sales. $
4. Discounted Cash Flows for only the total cash expenses. $
5. Discounted Cash Flows for only the sale of the equipment at the end of the project. $
6. Discounted Cash Flows for only the working-capital recovery at the end of the project. $
7. Net Present Value of the New Product (Investment). $
8. Should the company pursue the investment, yes or no?