A company is considering expanding their production capabilities with a new machine that costs $90,000 and has a projected lifespan of 9 years. They estimate the increased production will provide a constant $11,000 per year of additional income. Money can earn 1.9% per year, compounded continuously. Should the company buy the machine? Yes, the present value of the machine is greater than the cost by over the life of the machineSoluhon's - Annual payment = 11006 cost = goo00 intrest rate ( i) = 1. 3.1. Time period ( n) = g years s, present value of all annud payments- P = A [1-( Iti) " = 11006 1 - (1+0.019 ) ? = 1 1000 X 0. 1567 01019 0 . 019 = (11000 * 8.21 90310 s Since, Present value is greater than cost difference = 90310 - 90000 - 310 $ so, Present value is greater than by 3108