$(30\%)$ The administration of MTC Corp. would like to buy a machine to make their

operations more efficient. The following information has been provided by a vendor:

i$.$ Initial investment.....$$159,000$

ii$.$ Machine useful life.....$\mathrm{.}5$ years

iii. Improved efficiency in form of reduced yearly costs... $$67,000$

iv$.$ Rate of return for MTC Corp. is $13\%$

v$.$ Salvage value is zero.

$$ Required:

A$.$ What is Net Present Value $($NPV$)$ of this purchase?

B$.$ Is this a good idea? Why?