Please help with A,B,C,D and E. I have attempted this question a hundred times a d even plugged in other numbers but I am not understanding it. It is due by this weekend and I con't move forward unless this whole problem is solved. HELP!

Complete investment decisionWells Printing is considering the purchase of a new printing press. The total installed cost of the press is $2.14 million. This outlay would be partially offset by the sale of an existing press. The old press has zero bookvalue, cost $1.01 million 10 yearsago, and can be sold currently for $1.22 million before taxes. As a result of acquisition of the newpress, sales in each of the next 5 years are expected to be $1.53 million higher than with the existingpress, but product costs(excluding depreciation) will represent 47% of sales. The new press will not affect thefirm's net working capital requirements. The new press will be depreciated under

Rounded Depreciation Percentages by Recovery Year Using MACRS for

First Four Property Classes

Percentage by recovery year*

Recovery year 3 years 5 years 7 years 10 years

1 33% 20% 14% 10%

2 45% 32% 25% 18%

3 15% 19% 18% 14%

4 7% 12% 12% 12%

5 12% 9% 9%

6 5% 9% 8%

7 9% 7%

8 4% 6%

9 6%

10 6%

11 4%

Totals 100% 100% 100% 100%

using a5-year recovery period. The firm is subject to a 40% tax rate. WellsPrinting's cost of capital is 10.6%. (Note: Assume that the old and the new presses will each have a terminal value of $0 at the end of year6.)

a. Determine the initial investment required by the new press.

b. Determine the operating cash flows attributable to the new press.(Note: Be sure to consider the depreciation in year6.)

c. Determine the payback period.

d. Determine the net present value(NPV) and the internal rate of return(IRR) related to the proposed new press.

e. Make a recommendation to accept or reject the newpress, and justify your answer.