You have the following data about a proposed project:Cost of new equipmentIncrea

You have the following data about a proposed project:Cost of new equipmentIncrease need for Working Capital (to be released at end of project)Length of projectSalvage Value of equipment at end of projectAnnual cash savings if equipment is purchasedTax rateDiscount rate required of all investements$80000$200006 years$8000$2850035%14%Required:1. What is the annual accounting income?2. What is the annual after tax cash flow?3. What is the payback based upon the initial cash outflows?4. What is the discounted payback based on the initial cash outflows?5. What is the simple rate of return based upon the initial cash outflows?6. What is the net present value?7. What is the net present value8. What is the internal rate of return9. Would you recommend this project? Why or why not.Note: The solutions do not use formulas. It is highly recommended that studentuse formulas when preparing the worksheet for their own Week 4 solution.