A local dentist is considering the purchase of a new laser that uses state-of-th

A local dentist is considering the purchase of a new laser that uses state-of-the-art technology to painlessly perform root canals and remove cavities. Theinitial investment is $200000 and the dentist hopes the laser will NOT becomeobsolete for six years. She expects to increase the volume of patients in heroffice because not only is the laser painless it is fast. Cash flows are expected tobe $60000 for the first two years $75000 for the next two years and $90000for the final two years of the life of the asset. The dentist requires a 7.5% returnon dental equipment.A). Identify the reasons you think the operating cash flows might increase overthe life of the asset.B) Determine the net present value of the laser.C) State the accept/reject decision and justify your answer beyond the sign of theNPV.D) Determine the net present value of the laser if the initial investment increasesto $250000.