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Lnupier 13 Exercise 13-2. Lynde Company has been offered a contract to provide a key replacement part for the Army's main attack helicopter. The contract would expire in eight years. The projected cash flows that result from the contract are given below: Cost of new equipment.............................. $300,000 Working capital needed............ $100,000 Annual net cash inflows...... $ 85,000 Salvage value of equipment in eight years. $ 50,000 The company's discount rate is 16%. The working capital would be released for use elsewhere at the end of the project. Complete the analysis below to determine whether the contract should be accepted. (Ignore income taxes.)