22. Net Present Value Analysis. Architect Services, Inc., would like to purchase a blueprint machine for $50,000. The machine is expected to have a life of 4 years, and a salvage value of $10,000. Annual maintenance costs will total $14,000. Annual savings are predicted to be $30,000. The company's required rate of return is 11 percent. Required: 1. Ignoring the time value of money, calculate the net cash inow or outow resulting from this investment opportunity. 2. Find the net present value of this investment using the format presented in gure 5.2 \"NPV Calculation for Copy Machine Investment by Jackson's Quality Copies". Should the company purchase the blueprint machine? Explain. 23. Internal Rate of Return Analysis. Architect Services, Inc., would like to purchase a blueprint machine for $50,000. The machine is expected to have a life of 4 years, and a salvage value of $10,000. Annual maintenance costs will total $14,000. Annual savings are predicted to be $30,000. The company's required rate of return is 11 percent {this is the same data as the previous exercise). Required: 1. Use trial and error to approximate the internal rate of return for this investment proposal. Round to the nearest dollar. 2. Should the company purchase the blueprint machine? Explain. 24. Net Present Value Analysis with Multiple Investments, Alternative Format. Conway Construction Corporation would like to purchase a eet of trucks at a cost of $260,000. Additional equipment needed to maintain the eet of trucks will be purchased at the end of year 2 for $40,000. The trucks are expected to have a life of 8 years, and a salvage value of $20,000. Annual costs for maintenance, insurance, and other cash expenses will total $42,000. Annual net cash receipls resulting from this purchase are predicted to be $135,000. The company's required rate of return is 14 percent. Required: 1. Find the net present value of this investment using the format presented in Figure 5.4 \"Alternative NF'\\lr Calculation for Jackson's Quality Copies\". 2. Should the company purchase the new eet of trucks? Explain. 25. Calculating NPV and IRR Using Excel. Wood Products Company would like to purchase a computerized wood lathe for $100,000. The machine is expected to have a life of 5 years, and a salvage value of $5,000. Annual maintenance costs will total $20,000. Annual net cash receipts resulting from this machine are predicted to be $45,000. The company's required rate of return is 15 percent. Required: 1. Use Excel to calculate the net present value and internal rate of return in a format similar to the Computer Application spreadsheet shown in the chapter. 2. Should the company purchase the wood lathe? Explain