Tasty is considering replacing 20 of their checkout registers with new self-checkout equipment (Click the icon to view additional information.) Present Value of $1 table Present Value of Annuity of $1 table Future Value of $1 table Future Value of Annuity of $1 table Read the requirements Requirement 1. Given the preceding information, what is the net present value (NPV) of the new equipment? Ignore taxes. (Round intermediary calculations to the nearest whole dollar. Use factors to three decimal places, X.XXX, and use a minus sign or parentheses for a negative net present value. Enter the net present value of the investment rounded to the nearest whole dollar.) The net present value is Requirement 2. Assume the $68,000 cost savings are in current real dollars and the inflation rate is 2%. Recalculate the NPV of the project. (Round the nominal rate to the nearest whole percentage, and cumulative inflation rates to three decimal places, X.XXX. Round monetary intermediary calculations to the nearest whole dollar. Use factors to three decimal places, X.XXX, and use a minus sign or parentheses for a negative net present value. Enter the net present value of the investment rounded to the nearest whole dollar.) Assuming an inflation rate of 2%, The net present value is Requirement 3. Based on your answers to requirements 1 and 2, should Tasty buy the new checkout equipment? Based on the assumptions in requirements 1 and 2, Tasty should buy the new checkout equipment because both the unadjusted and adjusted NPV are positive. Tasty may also want to consider the effect of taxes and nonfinancial factors. Requirement 4. Now assume that the company's tax rate is 40%. Calculate the NPV of the equipment assuming no inflation. (Round intermediary calculations to the nearest whole dollar. Use factors to three decimal places, X.XXX, and use a minus sign or parentheses for a negative net present value. Enter the net present value of the investment rounded to the nearest whole dollar.) Assuming a tax rate of 40%. The net present value is Requirement 5. Again assuming that the company faces a 40% tax rate, calculate the NPV of the equipment under an inflation rate of 2%. (Round the nominal rate to the nearest whole percentage, and cumulative inflation rates to three decimal places, X.XXX. Round monetary intermediary calculations to the nearest whole dollar. Use factors to three decimal places, X.XXX, and use a minus sign or parentheses for a negative net present value. Enter the net present value of the investment rounded to the nearest whole dollar.) Assuming a tax rate of 40% and an inflation rate of 2%, The net present value is Requirement 6. Based on your answers to requirements 4 and 5, should Tasty buy the new checkout equipment? buy the new checkout equipment because If a careful review of the forecasted inflation rate results in a rate of inflation, Tasty should recalculate the NPV to determine Based on the assumptions in requirements 4 and 5, Tasty whether the purchase of the checkout equipment is in its best interest. More info The equipment currently being used is fully depreciated and has no disposal value. The new equipment will cost a total of $250,000. Because the new equipment is self-serve, Tasty will have annual incremental cash savings in labor costs of $68,000 per year. The equipment will have a 5-year useful life and no terminal disposal value. The equipment will be depreciated using the straight-line method. Tasty requires a 6% real rate of return