Answer:
The Net Present Worth at i 5% of Super Tools new test equipment is -$33,992.45
Explanation:
I calculated the net present based on cash flow projections that $300000 in years 1 and 2 ,declining by $50000 every year and it terminated year 8 with zero cash inflow.
I then discounted the cash flows using discounting factor calculated as (1+i)^n where i is the interest rate of 5% given as the n is the relevant year of cash flow.
Find details in the attached.
