Reference no: EM132568050

The following are the final values to the data:

1. The cost of the equipment will be $70,000 and this cost is incurred prior to any cash is received by the project.
2. The expected annual cash revenue of the project will be $30,000. 
3. The expected annual cash outflows (expenses/costs) are estimated at being $11,000, excluding depreciation.
4. Your tax rate is 30% and you plan to depreciate the equipment on a straight-line basis for the life of the equipment. The discount rate you are assuming is 6%.
5. After 5 years the equipment will stop working and there will be no salvage value.

Requirements of the paper:

Question 1: Perform the final NPV calculations and provide a narrative on how you calculated the computations and why (justification of answer).

Question 2: Present your calculated answers in schedule format (a table) along with your narrative. Microsoft Excel is also recommended for calculating and creating a table (your schedule).

Question 3: Then provide a summary conclusion on whether you should continue to pursue this business opportunity.

Question 4: Research, using at least one other sources other than the textbook materials that support your calculations and conclusions.