$($A$)$ initial investment

$($B$)$ cash back period

$($C$)$Net present valueBramble Inc. wants to replace its current equipment with new high$-$tech equipment. The existing equipment was purchased $5$ years

ago at a cost of $$121,000.$ At that time, the equipment had an expected life of $10$ years, with no expected salvage value. The equipment

is being depreciated on a straight$-$line basis. Currently, the market value of the old equipment is $$42,900.$

The new equipment can be bought for $$174,340,$ including installation. Over its $10-$year life, it will reduce operating expenses from

$$190,000$ to $$145,400$ for the first six years, and from $$203,600$ to $$193,600$ for the last four years. Net working capital requirements

will also increase by $$20,200$ at the time of replacement.

It is estimated that the company can sell the new equipment for $$24,400$ at the end of its life. Since the new equipment's cash flows

are relatively certain, the project's cost of capital is set at $9\%,$ compared with $15\%$ for an average$-$risk project. The firm's maximum

acceptable payback period is $5$ years.

Click here to view the factor table. Solve for $($A$)$ initial investment

$($B$)$ cash back period

$($C$)$Net present value