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More info The equipment currently being used is fully depreciated and has no disposal value. The new equipment will cost a total of $250,000. Because the new equipment is self-serve, Fit will have annual incremental cash savings in labor costs of $66,000 per year. The equipment will have a 5 -year useful life and no terminal disposal value. The equipment will be depreciated using the straight-line method. Fit requires a 4% real rate of return. Requirement 3. Based on your answars to requirements 1 and 2 , should Fit buy the new checkout equipment? Based on the assumptions in requirements 1 and 2 , Fit Fit may also want to consider Requirement 4. Now assume that the company's tax rate is 35%. Calculate the NPV af the equipment assuming no inflation. (Round intermediary calaula5ions to the nearest whole dollar. Use factors 10 three decimal places, X.XXX, and use a minus sign of parentheses for a nogative net present vastive. Enfer the net present value of the investment rounded to the nearest whole dollar.) Assuming a tax rate of 35%, The net present value is Requirement 5. Agnin assuming that the company faces a 35% tax rale, calcilate the NpV of the equipment under an inflation rate of 4%. (Round the nominal rale to the neavest Whole percentage, and cumulative inflation rates to three decimal plases, . Round manetary intermediary calculasiona io the nearsat whole dolus. Une tacton to three decimal places, XXX and use a minus sign or parantheses for a negative oet prosent valye. Enter the net present vaive of the investruent raunded to the nearest whele daliaf) Assuming a tax rate of 35% and an inflation rate of 4%, The net prosent value in Requirement 6. Based on your answors to requirements 4 and 5 , should Fit buy the new chectout equipment? Bassed on the nusumptions in requirements 4 and 5 , Fit buy the new checkout equipment because If a carnful review of the forecasted infation rate renuts in a recuvatase the Nrve to determine whether the purchase of the checkout equipment is in its best interest. Requirement 1. Given the preceding information, what is the net presient value (NPV) of the new equipmient? lanore taxes. (Round intermediary calculations to the nearest whole dollar. Use factors to three decimal places, X.XX, and use a minus sign of parentheses for a nogative net prosent value. Enter the net present value of the investment roinded to the nearest whole dollar.) The net present value is Requirement 2. Assume the $66,000 cost savings are in current real dollars and the inflation rate is 4%. Recaloulate the NPV of the project. (Round the nominal rate to the nearest whole percentage, and curnulative inflation rates to three decimal pinces, x. Round mionetary intermediary calculatione to the nearost whole dolar. Use factors to three docimal places, X00X, and use a minus sign or parentheses for a negativo net present value. Enter the not present value of the invasiment rounded to the neareot whole dollar). Assuming an inttation rate of 4%, The net present value is Requirement 3. Based on your answees to requirements 1 and 2, should Fit buy the new checkout equipment? Based on the assumptions in requirements 1 and 2 , Fit buy the new checkout equipment because Fit may alno want to connider Requirement 4. Now assume that the company/s tax rate is 35\%. Calculate the NPV of the equipment assuming no infitition. (Round internnediary calcuidations to the nearest whole doilar, Use fnctors to three decimal places, X.XX, and use a minus sign or parentheses for a negative net present value. Finter the net present valie of the investrment rounded to the nearest whole dollar.) Assuming a tax nate of 35%. The net present value is Requirement 5. Again assuming that the company facns a 36\% tax rate, calculate the NPV of the equipment under an inflosion rate of a\%. (Round the nominal rate to the nasieat Assuming a tax rate of 35% and an infation rale of 4%, The ret pretent value is

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