Transcribed image text: The company is planning to acquire new equipment for a cost of $38000. Management has already conducted and paid $15000 for a marketing survey while delivery and installation costs are expected to be $9000 and $7400 respectively. Financing costs are $3000 per year. The economic life of the investment in 5 years and the new equipment will depreciate straight-line to a zero value over 5 years. The management learn expects this new equipment at the end of 5 years at a price of $4000 It expects the acquisition to increase sales by $6000 annually while cash operation costs are expected to increase by $3200 annually. This investment will allow the replacement of old equipment which can be sold for $5000. It had a book value of $10000 four years ago, but it has now fully depreciated. The marginal tax rate is 25% and the expected rate of return is 12% Additional net working capital of $8000 will be needed immediately. When the project is terminated in 5 years, there no longer will be a need for this incremental working capital (a)Compute the net investment (b)Compute the net cash flow for each of the five years of the project (year 1-5) (c)What is the NPV of the project