Shrieves Casting Company is considering adding a new line to its product mix. The production line would be set up in a section of Shrievess main plant. This section is currently being rented out to an outside party for $25,000 per year. The machinerys invoice price would be $200,000, another $10,000 in shipping charges would be required, and it would cost an additional $30,000 to install the equipment. The machinery has an economic life of 4 years and would be in Class 8 with a CCA rate of 20%. The machinery is expected to have a salvage value of $25,000 after 4 years of use. Furthermore, to handle the new line, the firms net operating working capital would increase by $35,000. The new line would generate sales of 1,250 units per year for 4 years. The estimated selling price and cost per unit are: Selling price per unit: $200 Cost per unit: $100 The firms tax rate is 28%, and its overall weighted average cost of capital is 10%. Calculate the following: (enter answers with commas but without dollar sign e.g. 100,000 and not $100,000)

*Initial investment:

Capital cost of the equipment

Initial working capital requirement

*Annual after-tax cash inflows:

Sales

Cost of goods sold

Before tax cash inflows

After-tax cash inflows

*Present value of cash outflows:

Total present value of cash outflows

*Present value (P.V) of cash inflows:

P.V of annual after-tax cash inflows

P.V of salvage value

P.V of working capital recovered

P.V of CCA tax shield

Total P.V of cash inflows

*NPV and decision:

Net present value

Should the project be undertaken (answer Yes or No)