1 (25 marks)-Capital Budgeting Deluxe Piano Company is planning to purchase a machine capable to do certain operations that are no performed years. At the end of the fourth year period, the machine will have residual value of zero. However, it is expected that the use of the machine will generate net cash inflow of $9,000 end of year 1, 58,500 end of year 2, 58,000 end of year 3, and $7,600 end of year 4. Deluxe Plano Company requires a minimum return of 8%. Required: C. b. Compute the net present value (NPV). (14 marks) Should the machine be purchased? Explain the part (a) and part (b) figure. (5 marks) a. Compute the payback period for this machine. (6 marks) Net present value => Answer = (a)