A company is considering a $150,000 investment in machinery with the following net cash flows. The company requires a 10% return on its investments. Initial investment $150,000 10% Required rate of return Required: (a) Compute the net present value of this investment. Present Value of Net Period 1 Net Cash Flows Cash Flows $10,000 2 25,000 3 50,000 4 37,500 5 100,000 Totals $222,500 $0 (10,000) Initial investment Net present value Verify the value of cell C18 using the NPV function (b) Should the machinery be purchased? Yes Students: The scratchpad area is for you to do any additional work you need to solve this question or can be used to show your work. Nothing in this area will be graded, but it will be submitted with your assignment. 0