3. The general manager of a East Texas mining company has a chance to purchase a new drill at a total cost of $300,000. The recovery perlod is 5 years. Addtional annual ured rate pretax cash flow from operations is $80 , the economici e of the dril is 5 years, there is no salvage value, the inc me tax rate is 40% and the after tax m of return is 16%. (Click the icon to view the present value factor table.) (Click the icon to view the selected MACRS depreciaton schedule.) 2(Click the icon to view the present value annulty factor table.) Read the requirements Requirement 1. Compute the NPV, assuming MACRS depreciation for tax purposes. Should the company acquire the dril? value factor to four decimal placos, "Xxxxx) Begin by calcuiating the present value of the after-tax cash savings from depreciation on the dril (Round dollar amounts to the nearest whole number. Enter the present Present Value of $1 at 16% Cash Inflow Total Present Value Present value of lump sum after-tax cash savings from depreciation Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 Present value of tax savings from depreciation Now compute the net present value (NPV) of the investment. (Round dollar amounts the nearest whole number. Use a minus sign on value. Enter the present value annuity factor to four decimal places. xxox7 parentheses for a negative net present Present Value of Ordinary Annuity of $ Annual Cash Inflow Total Present Value at 5 16% Net present value: Present value of annuity of equal annual ) ) per year . After-tax cash flows from operations Present value of after-tax cash savings from depreciation Less: Initial investment Net prosent value Should the company aoquire the drit? The company (1) acquire the drill because the NPV of the investment is (2)