- The Cost to Purchase the Equipment will be $100,000 Now and it will last for 7 Years. - The Equipment will help to Increase Revenues for a Net Cash Inflow of $21,000 Annually - The Equipment Can Be Sold at the End of 7 Years for $33,000 - The Cost of Capital is 15%, Ignore Income Taxes QUESTIONS 1. Compute the Total Net Present Value (Cost) or Benefit to Buy the New Equipment = Input your Answer as a Number Only to the Nearest Dollar, No Commas, Decimals, or Dollar Signs. Show a Negative Number in Parens, Example =150=(150). 2. Compute the Net Cash Flow for this Capital Project = If the Time Value of Money? Input your Answer as a Number Only to the Nearest Dollar, No Commas, Decimals, or Dollar Signs. Show a Negative Number in Parens, Example =150=(150). 3. Compute the Profitability Index for this Project = Input your Answer as a Percent Rounded out 2 Decimal Places. Example =12.34 The Profitability Index Formula = NPV of Cash Inflows+Outflows / Initial Investment. 4. Which Rate is Greater on this Investment IRR or COC? = . Input your Answer as either IRR or COC 5. How Do you know the Answer to the Question Above? = Input your Answer with one of the Following; IRR >0 or IRR0 or COC0 or NPV0 or IRR0 or COC0 or NPVCOC or COC> IRR