please provide calculations

30 31 Installation of new mixing and testing equipment would reduce R&D spending for this project. 32 The new mixing and testing equipment would be upgrades that use proven technology 33 Expected cash flows for years 1 - 4 with this new equipment are as shown below. 34 35 1 2 3 4 36 Expected Cash Flow ($2,005) ($2,850) ($6.175) ($4,850) 37 with new Equipment 38 39 Expected cash flows for Years 5 - 10 are unchanged 40 and Intermedians would still have to pay Rutgers for their technology. 41 Purchase and installation of the new equipment requires spending (Year 0) of 42 $975 43 44 (i) What required rate of return would you use to evaluate the decision to 45 purchase and install the new equipment? 46 (Choose one) 47 15% 25% 35% 40% 48 49 Explain your choice. 50 51 52 53 54 55 (ii) Using the required rate of return chosen above, should Intermedians purchase and 56 install this equipment? 57 58 59 60 61 30 31 Installation of new mixing and testing equipment would reduce R&D spending for this project. 32 The new mixing and testing equipment would be upgrades that use proven technology 33 Expected cash flows for years 1 - 4 with this new equipment are as shown below. 34 35 1 2 3 4 36 Expected Cash Flow ($2,005) ($2,850) ($6.175) ($4,850) 37 with new Equipment 38 39 Expected cash flows for Years 5 - 10 are unchanged 40 and Intermedians would still have to pay Rutgers for their technology. 41 Purchase and installation of the new equipment requires spending (Year 0) of 42 $975 43 44 (i) What required rate of return would you use to evaluate the decision to 45 purchase and install the new equipment? 46 (Choose one) 47 15% 25% 35% 40% 48 49 Explain your choice. 50 51 52 53 54 55 (ii) Using the required rate of return chosen above, should Intermedians purchase and 56 install this equipment? 57 58 59 60 61