1)You purchase a new lathe for your shop. It costs $8,000 and will expand your business cash flow by $1,400/year in year 1 and these will grow by 5% per year. The system will work for 8 years before you have to replace it. What is the NPV (use a 4% discount rate? The vendor offers you an extended warranty costing $13,000 on top of the purchase price. This warranty extends the lathe's life by 8 years. a. What is the NPV of the machine with the extended warranty? b. Should you get it?

Please use the Excel template:Mid-Question 5.xlsx