A company is considering a $256,000 investment in machinery with the following net cash flows. The company requires a 12% return on its investments. Initial investment Required rate of return Required: $256,000 12% (a) Compute the net present value of this investment. Present Value of Net Period Net Cash Flows 1 $59,000 2 52,000 Cash Flows ($27,830) 0 3 148,000 Formula must include 4 84,000 the PV function. 5 58,000 0 Totals $401,000 Initial investment Net present value Verify the value of cell C18 using the NPV function (b) Should the machinery be purchased? Yes