Question 4 Agency Problem [20 marks] WIND Ltd rewards its CEO a $90,000 cash bonus if the accounting rate of return on assets (ROA) for the year is more than 18%. The CEO of WIND Ltd is considering an investment proposal regarding a piece of new equipment. A new equipment model, TP47, now attracts the attention of WIND's shareholders. The information regarding TP47 is given as follows: The purchase cost of the TP47 is $300,000; The equipment has a 10-year useful life, which can save labour costs by $72,000 each year; The residual value is estimated at 10% of the purchase cost. Discount rate: 10%. The CEO decides to reject this investment. Part A [6 marks] Prepare a capital budget schedule. Calculate the net present value (NPV) of this investment proposal.