Voice-Soft Inc. is trying to determine whether to open a new product line, Voice-Write, a speech-to-text product, which is expected to be competitive for four years. The cost of the new capital equipment including shipping and installation is $3100. The equipment will last for 4 years. They use simple straight line depreciation and the salvage value is $400. For 2016 to 2019, sales are expected to be $4000, 4000, 4200, and 4200; and operating expenses, $2800, $2800, $2700, $2700. The company is expecting to lose operating income of $200 per year due to Voice-Write cannibalizing its current product, Voice-Speak. Regardless of your answer to part I above (WACC calculation) assume Voice-Soft has a tax rate of 40% and a weighted average cost of capital (WACC) of 12

Complete the Project cash flow statement below and then answer questions.

	2015	2016	2017	2018	2019
Sales
Operating Expenses
Opportunity Costs
Depreciation
Operating Income (EBIT)
Taxes
Operating Income after taxes
Depreciation
Cash Flow
Salvage Value
Salvage Tax
Net Salvage Value
Initial capital Investment
Project Cash Flow

Determine the Net Present Value, IRR and should Voice soft make an investment? why?