NPV and maximum return A firm can purchase new equipment for a $32,000 initial investment. The equipment generates an annual after-tax cash inflow of $7,000 for 8 years. a. Determine the net present value (NPV) of the asset, assuming that the firm has a cost of capital of 13\%. Is the project acceptable? b. Determine the maximum required rate of return that the firm can have and still accept the asset