2. North Well hospital is considering automating the billing system which is currently processed manually. The equipment costs $75,000 to buy and $5,000 to install. The automation will save $21,750 per year (before taxes) by reducing manual labor costs. The equipment has a five-year life and is depreciated to zero on a straight-line basis over that period. At the end of the fifth year, the machine will be sold for $20,000. The tax rate is 35 percent, and the discount rate is 10 percent. Should North Well automate its billing system based on NPV? Explain