423 CHAPTER 10 Capital Budgeting Techniques P10-6 NPV for varying costs of capital Dane Cosmetics is evaluating mixing machine. The machine requires an initial investment of $24,000 and will generate after-tax cash inflows of $5,000 per year for 8 years. For each of the costs of capital listed, (1) calculate the net present value (NPV), (2) indicate whether to LG 3 fragrance- a new reject the machine, and (3) explain your decision. accept or a. The cost of capital is 10%. b. The cost of capital is 12%. c. The cost of capital is 14%