Problem 4. XYZ Company is considering buying equipment for $600,000. The equipment has an estimated life of 4 years and no salvage value. The estimated net income and net cash flow from the investment are as follows: Year 1 2 3 After tax Net Income $ 90,000 80,000 40,000 30,000 $240,000 Net Cash Flow $210,000 200,000 160,000 150,000 $720,000 The company requires a 15% rate of return from its investments. Year 1 2 3 JauAWN- 10% 0.909 1.736 2.487 3.170 3.791 4.355 4.868 15% 0.870 1.626 2.283 2.855 3.353 3.785 4.160 20% 0.833 1.528 2.106 2.589 2.991 3.326 3.605 Calculate the net present value AND profitability index. Should the company purchase this equipment? Why or why not