46. Can you help me resolve this?

Sivings in cash operating costs are expected to bo $100,000 per year. Howerer, additional working capital is neoded to keop the mactine running efficienty The woiking captal must contrualy be 14\%. lanore income thes, in your analyss. Assume al cash fows ocour at year-ond excopt for indial inestreent amounts. Elvin Rosearch uses straghtine depreciation tor ts machines Road the requisements. Requirement 1. Calculate not present value. (Use tactors fo tiree decimbl places; X00, and uso a minus sign or porenthoses for a negative ret prosech value. Enter ithe not presert value of the invesiment rounded to the rearest whole dollar) The net prosent value is Requirement 2. Calculate internal mase of retum (Use a thal-and-ercor appecoach and straight-ine interpolaton as necossary. Round all present value catculabons to the nearest whele dolar and round the IPRR to two docimal places, xx=2 ) The internal rate of roturn (iRf) is Based on not incial investment, the accrual accounting rale of return (AARF) is Based on averape investrient, the octrual accounting rate of tecurn (ARFRR) is Requirement 5 . You have the authority to make the purchase decsion. Why might you be reluctant to base your decision on the DCF methods? If your decision is based on the DCF model, the purchase made because the ret present value is and the internal rate of return the requred rate of wotuin Youmar be raluctant to the machine if you believe that you performance may actually be meassed using This approach woild show a retum on the indiol impestrant that the requied rase Reference Reference Reference Reference