Question: Summit Printing Company is considering purchasing a new press, requiring an immediate $99,000 cash outlay. The new press is expected to increase annual net after-tax

Summit Printing Company is considering purchasing a new press, requiring an immediate $99,000 cash outlay. The new press is expected to increase annual net after-tax cash receipts by $20,000 in each of the next 10 years, after which it will be sold to yield $10,000 after taxes. The company desires a minimum return of 14% on invested capital.
Required:
(1) Compute the of the project.
(2) Compute the index.

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