Question: Please provide a detailed solution fro the following problem Exercise 1: $0 points) Company X is considering the purchak of a new system to improve

Please provide a detailed solution fro the following problem

Please provide a detailed solution fro the following problem Exercise 1: $0

Exercise 1: $0 points) Company X is considering the purchak of a new system to improve its production citiciency. We believe that we can sell 6,000 units per year of our product at a price of 100$ auch. Variable costs are estimated to be 30% of sales and fixed costs are 130,000$ per year. Equipment costs 925,000$ and will be depreciaid Straight-linc lo zero Oyur is five-ycar lifa. li will be worth 90.600S at the end of the linic. The project requires an initial investment in net working capical of 125,000$. The tax rate is 40% and the discount rale Compute the NPV. Do we accept the project

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