Wye and Kan Knot are considering purchasing the assets of a robotics company in bankruptcy. The previous owners of Tin Can Robotics Uld invested $550 000 in a revolutionary waste management system and were on the point of launching the service, but ran out of money. The brothers believe the technology will work and the Knots would pay $300,000 to purchase the system for their company The equipment can be put into use immediately and it is expected to generate revenues of $500,000 annually for the initial five years, increasing to 5525,000 per year for the final five years Cash expenses will be $360,000 per year for ten years. Working capital of 575,000 will have to be injected at the start of operations to support sales If the project proceeds an overal of the equipment will be required at the end of years at a cost of $200.000 (cost to be capitalized) Ten years from now, the equipment can be salvaged for $80.000 CCA Rate 30% Tax Rate: 39% WACC 10% Required: Using the NPV approach determine if the Company should proceed with this investment Show all calculations