The management of Toucan Hotel and Villas has decided to that with effect July 1, 2020, the hotel should be HACCAP certified. This move would require that the hotel replace its existing cooking equipment in the kitchen. Five years ago, Toucan Hotel and Villas purchased the existing cooking equipment at a cost of $315,000. The hotel uses a straight-line method to depreciate its cooking equipment with a ten-year expected life. Currently, the market value of old equipment is $152,000. Toucan Hotel and Villas received a quotation from Restaurant Equipment and Supplies Inc. for new cooking equipment comprising rotisserie. Six burner gas ranges, exhaust hood and bain marie at a purchase price of $630,000. The installation cost is an additional $38,000 and the electrical service would have to be upgraded in the kitchen to accommodate the new equipment. The cost of this upgrade is $25,000. The new cooking equipment is expected to last the hotel 10-years. Over its 10-year life, it will reduce utility costs by $25,000 and other operating costs by $100,000 per year. The hotel will be required to invest working capital requirements by $28,000 at the beginning of the replacement and this will be recovered at the end of the project. It is estimated that the new refrigeration equipment machine can be sold at the end of its life for $125,000. The resort uses a 12% cost of capital and is registered under the Tourism Development Act Cap 680 of the laws of Bimshire and therefore not subject to any taxation. Required Complete the following tables to determine whether the new cooking equipment should be installed using the net present value method.. Calculate the initial