5. A machine costs K10,000 and has a life time of three years. It can either be a success or failure. If it is successful then it will produce an annual net cash flow of K5,000. The probability of success is 0.45. If it is a failure, the annual net cash flow will be only K3, 500. With the discount rate of 10%, calculate the expected net present value (ENPV). [4 marks]