Please answer question attached

1. (30 pts) A-Rod Industries is looking into purchasing a new piece of equipment. The original purchase price at the beginning of year 1 is $210,000. This equipment will last for 7 years with zero value at the end of its life. At the end of each year of the first six years, an annual maintenance program is required which costs $10,000. At the end of the 3rd year, an additional software upgrade will be required that will cost $50,000. Productivity increases will save A-Rod operational costs of $30,000 at the end of each of the first three years, and $80,000 at the end of each year after the software upgrade. A-Rod's cost-of-capital is 8%. Ignore depreciation and all income tax effects. Required: a. Calculate the net present value of the proposal. b. Should A-Rod purchase the equipment? Explain. c. The owner of A-Rod Industries, a Hall of Fame quarterback, was reviewing your analysis. He was adding up the cost savings and expenses and asked, \"If we save $410,000 in operating costs over the life of the equipment, and it only costs us $330,000 including all the maintenance and the software upgrade over that same period of time, shouldn't we obviously purchase the equipment?\" How would you answer him