Use Exhibits 26–3 and 26–4 to help compute the net present value of the proposal to sell the existing equipment and buy the laser printer, discounted at an annual rate of 15 percent. In your computation, make the following assumptions regarding the timing of cash flows. 1. The purchase price of the laser printer will be paid in cash immediately. 2. The $200,000 sales price of the existing equipment will be received in cash immediately. 3. The income tax benefit from selling the equipment will be realized one year from today. 4. Metro uses straight-line depreciation in its income tax returns as well as its financial statements. 5. The annual net cash flows may be regarded as received at year-end for each of the next 10 years. b. Is the cost to Metro Printers of acquiring the laser printer $2,500,000, as Adams suggests? Williams, Jan. Financial & Managerial Accounting (p. 1145). McGraw-Hill Higher Education. Kindle Edition.