Using the chart of cash revenues and costs read and explain the results of the cash flow analysis.Describe incremental cash flow.Explain sunk costs, opportunity costs, strategic value and inflation effects. Then provide your decision on whether to make the purchase or not. Support your answer with academic resources/references.

system cost: $2,000,000.00

Installation expenses: $5000,000.00

Total Cost: $2,500,000.00

net revenues: $750,000.00(1) $787,500.00 (2) $826,875.00 (3) $868,219.00 (4) $911,630.00 (5)

labor cost: $60,000.00 $63,000.00 $66,150.00 $69,457.00 $72,930.00

maintenance: $150,000.00 $157,500.00 $165,375.00 $173,644.00 $182,326.00

supplies: $30,000.00 $31,500.00 $33,075.00 $34,729.00 $36,465.00

net operating: $510,000.00 $535,500.00 $562,275.00 $590,389.00 $619,908.00

salvage value: $750,000.00

net cash flow: $2,500,000.00

net cash flow: $510,000.00 (1) $535,500.00 (2) $562,275.00 (3) $590,389.00 (4) $1,369,908.00 (5)

profitability measures:

net present value = $82,493.00

internal rate of return = 11.1%