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NPV. Grady Precision Measurement Tools hasforecasted the following sales and costs for a new GPS? system:annual sales of 45,000 units at $17 a? unit, production costs at39?% of sales? price, annual fixed costs for production at$210,000. The company tax rate is 38?%. What is the annualoperating cash flow of the new GPS? system? Should Grady PrecisionMeasurement Tools add the GPS system to its set of? products? Theinitial investment is $1,430,000 for manufacturing? equipment,which will be depreciated over six years? (straight line) and willbe sold at the end of five years for $ 380,000. The cost of capitalis 10?%.What is the annual operating cash flow of the new GPS? system?$________ (Round to the nearest? dollar.)What is the? after-tax cash flow of the GPS system at? disposal?$_________ (Round to the nearest? dollar.)What is the NPV of the new GPS? system? $_________ ?(Round tothe nearest? dollar.)Should Grady Precision Measurement Tools add the GPS system toits set of? products? ?(Select the best? response.)A. ?No, because the NPV is negative which means the projectedannual rate of return on the project is less than the cost ofcapital.B. ?Yes, because the project will generate enough wealth to giveinvestors an adequate yield.