This question is worth 10 marks. Please show the formulas that you are using and calculations. The potential manager of a new company is evaluating a business prospect. The new equipment for the prospect is expected to cost $5,500 and have after tax cash flows of $400 for the first two years, $750 in the next two years and $1,200 thereafter indefinitely. The owners estimate they will need a 15% return. What is the NPV and should they go ahead?