I am requesting some assistance with this problem, especially question d-1, and please provide an explanation for deriving the correct answer.

DataPoint Engineering is considering the purchase of a new piece of equipment for $350,000. It has an eight-year midpoint of its asset depreciation range (ADR). It will require an additional initial investment of $170,000 in nondepreciable working capital. $62,000 of this investment will be recovered after the sixth year and will provide additional cash flow for that year. Income before depreciation and taxes for the next six are shown in the following table. Use Table 1211, Table 1212. Use Appendix B for an approximate answer but calculate your final answer using the formula and financial calculator methods.

Year	Amount
1	$	218,000
2		182,000
3		162,000
4		157,000
5		106,000
6		126,000

The tax rate is 25 percent. The cost of capital must be computed based on the following:

		Cost (aftertax)			Weights
Debt	Kd		12.30	%		30	%
Preferred stock	Kp		15.40			10
Common equity (retained earnings)	Ke		20.00			60

d-1. Determine the net present value. (WACC = 17.23%)