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Your company purchased new equipment. The old equipment is at the end of its life. The new equipment cost $140,000 and has a five-year useful

Your company purchased new equipment. The old equipment is at the end of its life. The new equipment cost $140,000 and has a five-year useful life, with an estimated value of $57,000 after five years. It will be depreciated using a 5-year MACRS schedule. Sales will increase to $47,000 per year and costs will average 38% of sales. Inventory will increase by $4,000 due to increased sales. Your firms marginal tax rate is 28%. The discount rate is 9%. What is the NPV, IRR, and Payback Period, PV, PI for this investment?

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