department estimates that approximately 5,500,000 cans would be needed for each of the next 5 years . The company would hire six new employees . These six individuals would be full-time employees working 2,000 hours per year and earning $ 15.00 per hour . They would also receive the same benefits as other production employees , 15 % of wages in addition to $ 2,000 of health benefits . It is estimated that the raw materials will cost 30 ¢ per can and that other variable costs would be 10 ¢ per can . Because there is currently unused space in the factory , no additional fixed costs would be incurred if this proposal is accepted . It is expected that cans would cost 50 ¢ each if purchased from the current supplier . The company ’ s minimum rate of return ( hurdle rate ) has been determined to be 11 % for all new projects , and the current tax rate of 35 % is anticipated to remain unchanged . The pricing for the company ’ s products as well as number of units sold will not be affected by this decision . The unit-of-production depreciation method would be used if the new equipment is purchased . Required : 1 . Based on the above information and using Excel , calculate the following items for this proposed equipment purchase . o Annual cash flows over the expected life of the equipment o Payback period o Simple rate of return o Net present value o Internal rate of return The check figure for the total annual after-tax cash flows is $ 271,150 . 2 . Would you recommend the acceptance of this proposal ? Why or why not ? Prepare a short , double-spaced paper in MS Word elaborating on and supporting your answers . ================================================