5 of 7 ID: FMTH.ID.NPV.02A IBX Pty Ltd is considering the purchase of a new machine that is expected to save the company $62,000 at the end of each year in reduced wages. The machine costs $187,000, plus another $11,000 to be installed. It is expected to last for five years after which it can be sold as scrap for $48,000. Operating expenses (such as fuel and maintenance) are $8,000 pa. a) Determine the annual net cash flows of this investment (ignore the effect of taxes). Enter the information in the following table. Indicate whether cash flows are + or Time 0 1 2 3 4 5 Net Cash Flow b) Calculate the NPV if the required rate of return is 15% pa. Give your answer in dollars and cents to the nearest cent. NPV15% = $ c) Calculate the NPV if the required rate of return is 17% pa. Give your answer in dollars and cents to the nearest cent. NPV17% = $