A company is considering expanding their production capabilities with a new machine that costs $74,000 and has a projected lifespan of 8 years. They estimate the increased production will provide a constant $10,000 per year of additional income. Money can earn 1.3% 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 machine.

No, the present value of the machine is less than the cost by: $ over the life of the machine.