The equipment currently being used is fully depreciated and has no disposal value. The new equipment will cost a total of $215,000. Because the new equipment is self-serve, Zesty will have annual incremental cash savings in labor costs of $64,000 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. Zesty requires a 10% real rate of return. 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 $64,000 cost savings are in current real dollars and the inflation rate is 5%. 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 5%, The net present value is Requirement 3 . Based on your answers to requirements 1 and 2 , should Zesty buy the new checkout equipment? Based on the assumptions in requirements 1 and 2 , Zesty buy the new checkout equipment because Zesty may also want to consider Requirement 4. Now assume that the company's tax rate is 28%. 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 28%, The net present value is Requirement 5. Again assuming that the company faces a 28% tax rate, calculate the NPV of the equipment under an inflation rate of 5%. (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 28% and an inflation rate of 5%, The net present value is Requirement 6 . Based on your answers to requirements 4 and 5 , should Zesty buy the new checkout equipment? Based on the assumptions in requirements 4 and 5 , Zesty buy the new checkout equipment because If a careful review of the forecasted inflation rate results in a rate of inflation, Zesty should recalculate the NPV to determine whether the purchase of the checkout equipment is in its best interest. Zesty is considering replacing 20 of their checkout registers with new self-checkout equipment. 1. (Click the icon to view additional information.) Present Value of Annuity of $1 table Futi Requirements 1. Given the preceding information, what is the net present value (NPV) of the new equipment? Ignore taxes. 2. Assume the $64,000 cost savings are in current real dollars and the inflation rate is 5%. Recalculate the NPV of the project. 3. Based on your answers to requirements 1 and 2 , should Zesty buy the new checkout equipment? 4. Now assume that the company's tax rate is 28%. Calculate the NPV of the equipment assuming no inflation. 5. Again assuming that the company faces a 28% tax rate, calculate the NPV of the equipment under an inflation rate of 5%. 6. Based on your answers to requirements 4 and 5 , should Zesty buy the new checkout equipment