please answer a and b

A company is considering the purchase of equipment for a new product. An engineering and cost analysis has been made, and it is expected that the following cash flows would be associated with the new product: Cost of new equipment $ 380,000 Working capital required $ 120,000 $ 135,000* Annual net cash receipts Overhaul of the new equipment in three years Salvage value of equipment in four years $44,000 $69,000 The working capital would be released for reinvestment elsewhere at the end of the project. The company's required rate of return is 18%. Click here to view Exhibit 13B-1 and Exhibit 13B-2, to determine the appropriate discount factor(s) using tables. The tables are provided below. Required: a. Determine the net present value of the proposed project. (Any cash outflows should be indicated by a minus sign. Use the appropriate table to determine the discount factor(s).) Now Purchase of equipment Working capital investment Annual net cash receipts Road construction Working capital released Salvage value of equipment Total cash flows Discount factor (18%) Present value Net present value b. Should the project be accepted? O Yes O No 2 $ X OLOSSO w PO 1 22 6 SAD D SOLD NO Wus mo SOLO 2003 2 0925 000 000 O O O O O 300 EN 0.89 0164 0940 0772 073 072 2009 O 00641004 OEOS 005716 Od 0792 025 075 0 0 0 0 057 052 04 090 000.00 5 322 714 OMO 0 0 0 0 0 0 0 OMROOM GOS 0.705 000 0.60 056 0164 0 0 0 0 0 0 0 0 0 0 0 0 0 1 0 0.02 0.00 0.00 05 06 07 05 042 042 043 0.400 0.00354 om 0216 6 3 2 2 2 07 0677 0601 052 0540 502 0.467 064 0401 03 04 032 0335 070 0.20 02 620 0.20400 070006450.592 054 0500 0.460 042 03 0.3 0.3 0.784 026 020 0225 020000000 0.66 0.00558 OSO 04002 0.396 090.3226295 0270 020 022 0903 Oms OT 11 0.650 0585 052204750420 0.20 0.250 0.37 0.27 0.20 0237 0215 ONA O OMO mm 12 0.625 0557 0.497 0.64 0.397 0.356 0.31 0.200 0.25% 0.23 0.200 ON OSOB 04010 0100 t3 0601 000000000 0530 0409 0415 036032002900258 0.229 0201 02 03 01 010 OTV 00 00 00 00 00 00 00 14 0572 0505 0412 0.308 0.340 0299 0263 022 0205 0.101 OWO Own 0125 000 000 000 000 005 004 15 0556 0.40 0417 0.362 0.31502750229 0.2000 0.000 03 0106 0016 005 00 00 00 00 00 0040 10 0534 04580.394 0.29 0.292 0252 0218018 01010 0123 27 00 00 00 00 0054 000 000 000 000 000 17 050 0036 037 0312 0270 02:34:10 010 0106 008 0.000 0.000 000 0000 002 0045 000 0034 2030 18 0.494 0416 0.350 0295 0.250 0202020 0130 OM 0095 000 000 0.00 0.05 004 003 002 0025 0.024 000 19 0.475 0.396 0.331 02770232 0194 0164 0.00 0.00 0.00 0000 000 000 000 000 0001 0023 0000 0000 20 0.456 0377 0.312 0.250 0.25018 OSO 0124 0304 0070073 0001 0.0510003 0037 0001 0026 0022 0010000000 21 0.439 0.359 0.294 0.2420199 0164 0105 0112 0.083 00770064 005 004 00 0.001 0026 0092 0005 000 000 000 -22 0422 0342 0.278 02260154 0150 0123 0:101 0.083 0.008 0.056 0.06 0.038 0002 0026 0022 0.0005 000 000 000 000 23 0.406 0325 0262 0.211 010 000 0112 0.0910074 0050 0049 0.040 0.033 0.027 0022 00 0015000000000000000 24 0390 0.310 0.247 0.197 01580126 0302 0.002 0.006 0.053 000 0.035 0.025 0.023 000 000 000 0.000 0.00 0.00 0.000 0.00 25 0.375 0295 0.223 0154 0546 0.116 0.092 007 008 0007000030 0.024 0.020 0:00 000 000 000 000 000 000 0004 26 0.381 0.281 02200172 0135 0:1050084 0066 0053 0002 0.030 0026 0.021 0.01 0.04 0.010009 0.00 0.00 0.00 0.0040 27 0.347 0.268 0207 0.61 0125 0.00 0.076 0.060 0067 0.007 0.029 0.023 0.01 0.01 0.01 0.000 0.007 0.006 0005 0004 00000002 28 0.333 02550196 01500155 0090 0069 0.054 0012 003 0028 0.020 0016 0.012 0010 0000 0005 0.005 004 0000 0000 0000 0.008 0.005 000 0004 0000 0002 0.002 0.002 29 0.321 0.243 0.185 0:141 0.007 0082 0.063 004 0037 0029 0.022 0.01 -0.014 0.01 30 0.308 0.2310174 0131 0099 0.075 0.057 0044 0033 0.025 0.020 0,015 0012 0.00 0.00 0.00 0.004 0000 0000 0002 0.002 000 0.008 0005 0004 0.003 0002 0.001 0.00 0.00 0000 0000 0000 0000 0000 40 0208 01420.097 0.067 0.046 0032 0.022 0.015 0.011 CSEO BO 2 CUC SAL 3900 MOS NICS COS IF 6 0.062 m 005 OLM 0.90 ON 0.97 0.00 OK Oman OOO016100 0000 000 ton 1711 150 70 Oto 2.775 toon 1628 to 1506 2624 2571 25.11 2.1 2.444 2.407 2 212 212.342.02.12 150 AM 4 10 14 1:01 2012 2110 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7379 69746604 6.265 5954 53 545 52 493 470 456 495 41403 1 17 20 11274 10.427 9763 9122 3544 3022 2549 2120 6.729 5.373 6047 5.749 5.415 5222 4900 4775 456 43 4210 4050 1910 12.659 11.690 10.8.28 10.0599372 8756 8.201 27002250 6.40 6.607 6128 50 54 5273503344508 449 42414000100 19 3.134 120051150 10.1069604 8.950 8.365 78323666.938 65506.1981.6755945365070 433 465 42 4253 4017190 20 9129 590 12.452 11470 3984 45570 46 41042294 8.5147967409 10.5949818 7025 6623 6.250 5.529 562 5.353 5101 21 4091 14029 11764 12.901 11649 3 075 7562 10.836 1007 9292 4675 406 4292 1963 2102 6676312 5.973 5.665 5.334 5227 6743 10 201 9.642 22 14 4513.103 87728178 12.042 00 4900 4600 4438 4302 410 1970 7645 1170 6.359 60 5.696 5410 50 4072576 23 1457 1489 4975_4703449949 1037 12.30311272 9580 8.883 266 27 2.230 679263996.044 572354325167 4507 431433901 24 15 247 13.799 12.55011409 10.529 9.707 8.905 348 2754 7283 6835 64346.073 5740 54515182 4937 470 514432340 25 15 622 4094 12783 91654 1067 9329 9077 3.62278437330 6.873 6058 6:097 5706 5467 5195498 4721 3456 78967372 6906 6.491 6.35.73 5.400 5.2004956 4728 520 432841513905 20 1598316375 3003 11826 108109.929 27 8 548 2941 7409 6935 5514 636 5.798 5.492 526 4964 4734 4524 432 41541990 16 330 14613 13.241 11987 901935 10.029.237 10.116 051 9302 8602 7984741 696 6.534 61525.000 5502 5223 4.970 47304528 4305 49573992 28 16.063 54 9983406 693 5551 656 5.820 5510 5229497547434531433741593994 29 9.370 8650 30227470 13.591 16.984 15341 10190 12.278 1115 5.829 550 523549794745 4594 4300 410 1995 30 12292 15372 13765 12.400 11.258 10274 9.427 8.694 8055 749670038.566 6177 6.642 6223 557 554 5.258 4997 4750 4544 430 49562999 9.7798.951 8244 7034 2105 40 19.793 17959 15045 133321925 10.757 196 1232