PART II: Please answer the questions below in the blank space(s) following the text of each question. Make sure you clearly indicate/show how you arrive to the correct answer. You will receive a grade ofzero for each illegible answer and/or each answer improperly indicated/placed. Clearly show all yourwork. 1. If Rosinki Fabricators purchases $618,000 of new equipment, they can lower annual operating costs by $265,000. The equipment will be depreciated straight-line to a zero book value over its 3-year life. At the end of the three years, the equipment will be sold for an estimated $60,000. The equipment will require the company to hold an extra $23,000 of inventory over the 3-year period. and the tax rate is 21 percent? a. Calculate the annual cash flows for this project (up to 14 points). b. Calculate the NPV of this project at a discount rate of 14 percent. (up to 1 point)