3. Palatial Products Inc. is considering the purchase of a new industrial machine. The estimated cost of the machine is $150,000. The machine is expected to generate annual cash inflows for the next four years as follows: Year Annual cash flow $60,000 $50,000 $40,000 $40,000 The machine is not expected to have a residual value at the end of its useful life. The company uses a discount rate of 12% Required: Compute the net present value of the machine. (Ignore income taxes)