Question: answer please You must evaluate a proposal to buy a new pizza oven for Pistol Pete's Pizza Palace. The base price is $108,000, and shipping

 answer please You must evaluate a proposal to buy a new

answer please

You must evaluate a proposal to buy a new pizza oven for Pistol Pete's Pizza Palace. The base price is $108,000, and shipping and installation costs would add another $12,500. The equipment falls into the MACRS 3-year class, and it would be sold after 3 years for $65,000. The applicable depreciation rates are 33%, 45%, 15% and 7%. The machine would require a $5,500 increase in net operating working capital (increasing inventory less increased accounts payable). There would be no effect on revenues, but preta labor cost would decline by $44.000 per year. The marginal tax rate is 35%, and the WACC is 12%. Also, the firm spent $5,000 last year investigating the feasibility of using the machine. What are the NPV and IRR for this project? What are the and for this project

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