Use the following information for questions 22 and 23: You have been given the following details concerning a piece of equipment that is being considered for purchase: Purchase price of equipment Expected life of equipment Salvage value at end of useful life Working capital requirement One time expense in Year 3 $188,000 4 years SO $34,000 $45,000 Annual sales $650,000 Annual cash operating expenses $458,000 Income tax rate 30% After-tax discount rate 11% The company uses straight-line depreciation. All cash flows occur at the end of the year except the initial investment. 22) How much is the annual cash flow for Year 1? (Worth 6 Points) a) $148,500 b) $145,000 c) $101,500 d) $134,400 23) What is the net present value of the equipment? (Worth 6 Points) a) $194,917 b) $238,175 c) $374,500 d) $335,850