The Happy Valley Company is planning to purchase a new machine. The payback period is estimated to be six years. The cash flow from operations, net of income taxes, is estimated to be \(\$ 2,000\) a year for each of the first three years and \(\$ 3,000\) for each of the next three years. Depreciation of \(\$ 1,500\) will be charged to income each year. The salvage value is estimated to be \(\$ 3,000\) at the end of the life of the machine.

{Required:}

Determine the estimated useful life of the machine and the net book value of the machine at the end of six years.