point(s) possible T Integrative: Complete Investment decision Wells Printing is considering the purchase of a new printing press. The total installed cost of the press is $2.23 million. This outlay would be partially offset by the sale of an existing press. The old press has zero book value cost $1.04 million 10 years ago, and can be sold currently for $1. 17 milion before taxes. As a result of acquisition of the new press, sales in each of the next 5 years are expected to be 5162 million higher than with the existing press, but product costs (excluding depreciation) will represent 52% of sales. The new press will not affect the film's networking capital requirements The new press will be depreciated under MACRSD using a five-year recovery period. The firm is subject to a 40% tax rate Walls Printing's cost of capital is 11.4%. (Note: Assume that the old and the new presses will each have a terminal value of $0 at the end of year 6) a. Determine the initial cash flow required by the new press 6. Determine the periodic cash inflows attributable to the new press (Note: Be sure to consider the depreciation in year 5.) c. Determine the payback period d. Determine the net present value (NPV) and the internal rate of return (IRR) related to the peoposed new press, e. Make a recommendation to accept or reject the new press, and justify your answer d 1 th a. Determine the initial cash flow required by the new press Time Remaining:01:41 07 Next month Type a message 30'C Sunny hp les Data table tegrative: C illion. This ou urrently for $1 he existing prel he new press 1.4%. (Note: Determine the Determine the -Determine the Determine the Make a recol (Click on the icon here in order to copy the contents of the data table below into a spreadsheet.) Rounded Depreciation Percentages by Recovery Year Using MACRS for First Four Property Classes Percentage by recovery year Recovery year 5 years 7 years 10 years 1 33% 20% 14% 10% 2 45% 32% 25% 18% 3 15% 19% 18% 14% 4 7% 12% 12% 12% 5 12% 9% 9% 3 years Determine the Print Done TU Type a message onth