Orange, Inc. is considering the purchase of a piece of equipment which will generate an additional cash income of $75,000 per year. The equipment will cost $240,000 and have an estimated life of 4 years. At the end of the four years, the company can expect to sell the equipment for $25,000. Orange is not interested in purchasing the equipment unless it pays back the original investment in 3.25 years or less on a before tax basis. Also, the company desires a before tax rate of return of 12% on all investments. The company uses straight line depreciation for all assets. REQUIRED: (1) (2) Compute the payback period for the equipment on a before tax basis. Compute the net present value of the equipment on a before tax basis. Round all present value factors to four decimal places and all dollar amounts to the nearest whole dollar. Should the company purchase the equipment? Explain. (3)