1. Brown Shoe Company is considering investing in one of two machines that cut leather for shoes. Machine A costs $55,000 and is expected to save the company $13,000 annual operating cash flows for six years. Machine B costs $89,000 and is expected to save the company $22,000 annual cash flows for six years. Determine the net present value for each machine and decide which machine should be purchased if the required rate of return is 10 percent. 2. Saren Millworks is contemplating the purchase of a new casting oven. The oven will cost $40,000 but will generate additional revenue of $30,000 per year for ten years. Additional costs, other than depreciation, will equal $15,000 per year. The oven has an expected life of ten years, at which time it will have no residual value. Saren uses the straightline method of depreciation. Determine the net present value of the investment if the required rate of return is 14% and the tax rate is 40%. Should Saren Millworks make the investment in the boiler