RG Wholesalers is also evaluating the acquisition of one of three possible pieces of equipment to automate its operations. The initial investment required for each of the proposed pieces of equipment is $70 000 and they each have a useful life of 7 years. The firm's cost of capital is 14 per cent. The net cash flows for the three pieces of equipment are as follows: Year Equipment A Equipment B Equipment C 1 $ 27 250 $ 10 000 S 25 000 2 33 750 20 000 25 000 20 000 3 9000 30 000 4 10 000 8 000 7 000 5 6 7 6 000 5 000 $ 96 000 (8 000) 20 000 30 000 $112 000 15 000 10 000 5 000 2 500 $102 500 Total I a. To evaluate the investment opportunities compute the Net Present Value of the three pieces of equipment b. Calculate the Discounted payback period for each piece of equipment