2. The Jones Company is evaluating a proposal to purchase a new drill press to replace a less efficient machine presently in use. The cost of the new machine, including installation, is $200,000. The machine is expected to last four years. Depreciation is computed using the straight-line method with no salvage value assumed. Pretax cash flows are expected to increase by 70,000 each year. The expected salvage value of the machine in vear 5 is $20.000 The company has a cost of capital requirement of 10%. The tax rate for the company is 20%. For this investment, compute the: a. payback period b. net present value