Question: answer each part please! NPV and maximum return A m can purchase new equipment for a $17,000 inibial investment. T The equipment generates an annual

answer each part please!

NPV and maximum return A m can purchase new equipment for a $17,000 inibial investment. T The equipment generates an annual after-tax cash inftow of $8,000 for 5 years a. Dotermine ee not present valo (NPO ofte asset, assuming that the frmhas a cost of capital of 11%. Is te propect acoepablr? b. Deternine the maximum required rate of retum that the fiem can have and still accept the asset a. The not presert value (NPM ofthe new equipment is S (Round toto roarest art) Clear A remaining 1 3

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